moserbaer cover 2014 full
TRANSCRIPT
Consolidation | Rejuvenation
Annual Report Apr-Dec 13
Vision, Mission 01
Year at a Glance 01
Chairman's Message 02
Board of Directors 04
Management Discussion and Analysis 04
Corporate Social Responsibility 15
Financials 17
Co
nte
nts
1
VISION
“Touching every life across the globe through high
technology products and services”
MISSION
We will drive growth through our excellence in mass
manufacturing. We will move up the value chain through
rapid development of technology, products and services.
We will leverage our relationships, distribution, cost
leadership and “can do” attitude to become a global
market leader in every business.
YEAR AT A GLANCE
CONSOLIDATION
• Integrating manufacturing facilities to optimise
resources & drive supply chain synergies.
• Rationalization of operating costs in
manufacturing.
• Reducing inventory levels in the storage media
business.
• Approval of the Corporate Debt Restructuring
(CDR) Schemes and its implementation.
REJUVENATION
• Moser Baer collaborated with a global player to
manufacture and supply security tokens, smart
cards and SIM cards.
• The solar manufacturing unit has become the
first and only high technology brand from India
to achieve Rs. 100 Crore exports to the highly
competitive and quality conscious Japan
market.
• The Solar arm of the company emerged as the
largest solar EPC player in India with more than
250 MW of installations across the country
• Created new benchmarks in completing large
scale ground mounted solar farms
• The fledgling LED lighting business in pilot
phase, acclaimed among the top LED tube
lights players in India.
CORPORATE SOCIAL RESPONSIBILITY
Through Non-formal education centers, 151
out-of-school children / drop outs are now
accessing basic education again
• Through our partnership with NASSCOM
Foundation and Microsoft India, 784 students
(492 Male & 292 Female) are accessing quality
IT educational services
• Launched a library in Nandgram, Ghaziabad
with 18000 books. The library has about 507
registered members
• Working with 140 youngsters in the industrial
locations of Noida in Uttar Pradesh as part of
yUDAI, a comprehensive training and
mentoring programme for the overall
development of youth as responsible citizens
of the country.
•
2 3
CHAIRMAN’S MESSAGE
The world economy has experienced a subdued
growth for another year in 2013, unable to meet even
the modest projections of many institutional
forecasters made earlier, including that of the World
Economic Situation and Prospects (WESP) 2013.
According to the information available, world gross
product (WGP) is estimated to have grown by 2.1 per
cent in 2013, lower than the baseline forecast of 2.4
per cent. While many would see this as negative
growth, I would also say – it is better than many
pessimistic scenarios that people had predicted.
Some signs of improvements have shown up more
recently: the euro area has finally come out of a
protracted recession, with gross domestic product
(GDP) for the region as a whole returning to growth; a
few large emerging economies, including China, seem
to have backstopped a further slowdown and are
poised to strengthen. The rejuvenation for the industry
is ready to happen, now!
When you run an entrepreneurial business, you are
hungry for more - you don’t look back – you are ready to
ride the curve. However, a business can be sustainable
only when you consolidate and rejuvenate from time
to time. While the process of consolidation is
sometimes painful, it is essential for rejuvenation.
This year too, like last year we have seen our business
go through tough times enhanced by negative
sentiments surrounding the economy. The confidence
reposed by our stakeholders in us even during these
trying periods continues to stand us in the good stead.
Our key stakeholders like customers, strategic
suppliers, multiple bank consortiums and Moser Baer
employees are appreciative of the current positive
trends in the company which has successfully faced
difficult situations in the past.
stFrom a business standpoint, the period 01 April 2013 stto 31 December 2013 was about consolidation and
rejuvenation. We continued to focus on our core
competencies in the Storage Media business and
build on our technology heritage. The unique
combination of well established and emerging
businesses built on a common base of manufacturing
excellence will form the base for a rejunvated Moser
Baer.
Your company continues to be among the market
leaders in the global storage media industry and No.1
solar EPC player in the country. We notice increasing
demand for new generation storage media products
that too in higher storage capacity. As part of its
overall strategy for growth, your company has taken its
first steps towards energy efficient lighting business
though on pilot basis initially.
The Storage Media business includes Solid State
Media segment (Flash Drives, SD and Micro SD cards)
which continues to witness an increase in
acceptability and usage due to ease of use and
declining per unit costs. The segment continues to
grow rapidly owing to young population in the country
with increased disposable income. Such a transition in
products and technology is core to the revival of our
revenue model.
The turnaround in the global solar PV industry that
started in the first half of CY 2013 gathered
momentum during the second half of the year. The
technology understanding of the solar PV sector
paved way for the solar subsidiary, Moser Baer Solar to
firmly entrenching itself in the “highly quality focused”
Japanese solar PV market. The solar subsidiary, has
achieved sales of more than Rs 250 crore during the
nine month period ending December, 2013. The solar
arm should be able to rejuvenate on the back of
government guidelines & policies like DCR, ADD (Anti
Dumping Duty) and Central as well as State level solar
missions. This will also help in rebuilding a strong and
self sustaining domestic manufacturing sector
capable of serving the growing demand for solar
energy in India.
Your company continues to maintain its leadership
position in the Indian solar EPC space with over 260
MW projects installed till date. The future is tough but
we are well geared to surmount the challenges.
Notably, your company has focused on consolidation
of its operations and improving processes. The slew of
steps towards transitioning technology is likely to help
the company overcome the challenges.
I must thank all of you, who have stood beside us in the
tough moments and as we continue to drive towards
“re-writing the future”.
Best Regards,
(Deepak Puri)
2 3
CHAIRMAN’S MESSAGE
The world economy has experienced a subdued
growth for another year in 2013, unable to meet even
the modest projections of many institutional
forecasters made earlier, including that of the World
Economic Situation and Prospects (WESP) 2013.
According to the information available, world gross
product (WGP) is estimated to have grown by 2.1 per
cent in 2013, lower than the baseline forecast of 2.4
per cent. While many would see this as negative
growth, I would also say – it is better than many
pessimistic scenarios that people had predicted.
Some signs of improvements have shown up more
recently: the euro area has finally come out of a
protracted recession, with gross domestic product
(GDP) for the region as a whole returning to growth; a
few large emerging economies, including China, seem
to have backstopped a further slowdown and are
poised to strengthen. The rejuvenation for the industry
is ready to happen, now!
When you run an entrepreneurial business, you are
hungry for more - you don’t look back – you are ready to
ride the curve. However, a business can be sustainable
only when you consolidate and rejuvenate from time
to time. While the process of consolidation is
sometimes painful, it is essential for rejuvenation.
This year too, like last year we have seen our business
go through tough times enhanced by negative
sentiments surrounding the economy. The confidence
reposed by our stakeholders in us even during these
trying periods continues to stand us in the good stead.
Our key stakeholders like customers, strategic
suppliers, multiple bank consortiums and Moser Baer
employees are appreciative of the current positive
trends in the company which has successfully faced
difficult situations in the past.
stFrom a business standpoint, the period 01 April 2013 stto 31 December 2013 was about consolidation and
rejuvenation. We continued to focus on our core
competencies in the Storage Media business and
build on our technology heritage. The unique
combination of well established and emerging
businesses built on a common base of manufacturing
excellence will form the base for a rejunvated Moser
Baer.
Your company continues to be among the market
leaders in the global storage media industry and No.1
solar EPC player in the country. We notice increasing
demand for new generation storage media products
that too in higher storage capacity. As part of its
overall strategy for growth, your company has taken its
first steps towards energy efficient lighting business
though on pilot basis initially.
The Storage Media business includes Solid State
Media segment (Flash Drives, SD and Micro SD cards)
which continues to witness an increase in
acceptability and usage due to ease of use and
declining per unit costs. The segment continues to
grow rapidly owing to young population in the country
with increased disposable income. Such a transition in
products and technology is core to the revival of our
revenue model.
The turnaround in the global solar PV industry that
started in the first half of CY 2013 gathered
momentum during the second half of the year. The
technology understanding of the solar PV sector
paved way for the solar subsidiary, Moser Baer Solar to
firmly entrenching itself in the “highly quality focused”
Japanese solar PV market. The solar subsidiary, has
achieved sales of more than Rs 250 crore during the
nine month period ending December, 2013. The solar
arm should be able to rejuvenate on the back of
government guidelines & policies like DCR, ADD (Anti
Dumping Duty) and Central as well as State level solar
missions. This will also help in rebuilding a strong and
self sustaining domestic manufacturing sector
capable of serving the growing demand for solar
energy in India.
Your company continues to maintain its leadership
position in the Indian solar EPC space with over 260
MW projects installed till date. The future is tough but
we are well geared to surmount the challenges.
Notably, your company has focused on consolidation
of its operations and improving processes. The slew of
steps towards transitioning technology is likely to help
the company overcome the challenges.
I must thank all of you, who have stood beside us in the
tough moments and as we continue to drive towards
“re-writing the future”.
Best Regards,
(Deepak Puri)
4 5
BOARD OF DIRECTORS
MR. DEEPAK PURI
Chairman & Managing Director
MRS. NITA PURI
Whole Time Director
MR. JOHN LEVACK
Non-Executive and Nominee Director
MR. BERNARD GALLUS
Independent and Non-Executive Director
MR. VINEET SHARMA
Independent and Non-Executive Director
MR. SANJAY JAIN
Additional Director
MR. K. AJIT KUMAR
Nominee Director
MANAGEMENT DISCUSSION & ANALYSIS
INTRODUCTION
The nine month period (April-December 2013) continued
to be challenging for Moser Baer given the backdrop of a
challenging economic environment. Strong impetus was
given to consolidation measures and restructuring of
operations as we continued to focus on our core
competencies in the Storage Media market and build on
strengths in other businesses for sustainable
development, encouraging and supporting value creation
for our stakeholders in the long term.
As per IMF’s World Economic Outlook (April 2014) report,
World output growth declined for the third consecutive
year to 3.0% in 2013 from 4.0% in 2011. For the third year
in succession, Emerging Markets’ output growth lowered
to 4.7% in 2013 from 6.4% in 2011. Activity in many
emerging market economies has been disappointing,
although they continue to contribute to more than two-
thirds of global growth. As per IMF, a strong recovery is
expected in 2015 & 2016 for the global economy, Euro
Area and Emerging Markets.
COMPANY OVERVIEW
For the nine month period ended December 31, 2013,
Moser Baer continued to witness financial constraints
and resultant supply chain bottlenecks that affected its
operating performance. Continuous operating losses
during the period whilst working on revival and re-
structuring led to erosion of reserves. Given the need to
transition in the Storage Media industry, the Company’s
focus continued to be on refocusing product lines
accompanied by rationalization of operating costs in
manufacturing and consolidation of operations to
generate cost efficiencies.
• Total Revenue: For the nine month period
ended December 31, 2013, the Company’s
total revenue including other income stood at
INR 10,058 million on a standalone basis
• EBITDA (including other income) stood at INR
706 million for the period
• Cash and Liquidity: Net cash flows from
operating activities stood at INR 313 million
For the nine month period ended December 31, 2013,
Moser Baer’s Business was affected by financial
constraints that affected operations. While the overall
global storage media industry remained largely stable,
there were variations in the geographic and product mix
compared to previous years. Moser Baer’s Storage
Media business undertook several steps that were aimed
at lowering the operating costs and aligning resources to
the current levels of operations.
Moser Baer continues to focus on its key strengths - wide
geographic presence across the World, broad product
portfolio across all formats, strong focus on quality and a
strong distributor network. In a period spanning three
decades, the Company has globally developed itself as a
preferred OEM brand through its high quality and credible
products, supplied across the globe and is thus well
placed to leverage the current and emerging market
opportunities, both in respect of Blank Optical Media as
well as Solid State Storage. Concurrent with this, the
Company continues to retain its presence in the
Domestic pre-recorded segment and leverage its
strength in terms of Brand Franchise as well as
distribution.
The Corporate Debt Restructuring (CDR) schemes of
Moser Baer India Ltd. and its PV subsidiaries have been
approved and are under implementation. Post successful
implementation of the CDR scheme, the Storage Media
business is expected to further ramp up resulting in
improved operational and financial performance.
In the solar PV segment, during 2013 the global industry
showed definitive signs of a turnaround as evident by the
16% Y-o-Y growth in global PV installations to 36 GW
during the year (Solarbuzz).
Demand supply equilibrium in the global PV industry
improved on account of a robust demand from China,
Japan and the US during 2013 and signs of consolidation
in the global PV industry. This improvement in the market
environment led to stabilization in the PV module prices
globally and improvement in the financial/operating
performance of Tier I solar PV manufacturers.
The Indian PV market on the other hand slowed down
marginally in 2013 on account of delay in implementation
of Solar Policies of several States in India. During CY 2013,
the Indian market witnessed 905 MW of solar PV
installations compared to 982 MW in CY 2012. However,
medium to long term outlook of the Indian market
continues to remain strong with over 12 GW of
cumulative solar PV capacity forecast by end of 2016
(Bridge to India).
This improved global macro environment along with a
high potential domestic market provides opportunity to
us to benefit from both these segments, given that we are
the largest integrated PV manufacturer in India. We are
currently focusing on high margin markets such as Japan
and are poised to tap the emerging opportunities in the
domestic and other export markets. In 2013, Moser Baer
Solar became the only high end technology brand from
India to achieve the significant milestone of over INR
1,000 million of PV module sales to Japan during Apr -
Dec 13.
In 2013, Moser Baer Solar Ltd. maintained its leading
position in the solar EPC segment and emerged as the
largest player in India (Bridge to India). It has in total
executed over 260 MW of projects across different PV
technologies and terrains in India and recently, the
company commissioned a 5 MW solar project for a
prestigious PSU in January 2014.
STORAGE MEDIA
STORAGE MEDIA INDUSTRY
During the nine month period ended December 31, 2013,
the ongoing re-alignments in the global Optical Media
industry affected the demand and ASPs for all the top
rung players. While the demand for Optical Media
products declined in the developed markets, countries in
Asia Pacific, Africa, Middle East & Latin America regions
continued to develop as stable demand centers.
New generation Optical Media products like Blu-ray
continue to witness broad based growth in demand in
mature markets such as Japan, USA and Europe while the
demand for the first generation products such as CDs
have started witnessing a downtrend. Emerging Markets
(including the home market), on the other hand remain
stable for DVDs & Blu Ray products.
The Storage Media business includes Solid State Media
segment (Flash Drives, SD and Micro SD cards) which has
witnessed high growth in India and is growing globally
due to ease of use and declining per unit costs. Rapid
penetration of personal computing devices in the
developing markets and robust increase in demand for
smart phones globally is also driving up demand in the
segment.
MOSER BAER’S STORAGE MEDIA BUSINESS
Moser Baer continues to remain one of the leading
players in the global Storage Media industry both in terms
of low cost mass manufacturing and in offering a wide
range of high quality products spread across all formats.
The Company on the back of its high quality standards
and strong service offering continues to maintain
business alliances with leading OEMs across the world.
The company continues to supply its products across all
regions of the World.
Given the need to transition in the Optical Media industry,
our focus continued to be on rationalization of operating
costs in manufacturing and consolidation of operations to
generate cost efficiencies.
We are aggressively pursuing new geographies to
capture incremental markets and acquire new customers
and expect our Non-OEM market share to increase in the
medium term. Going forward, this is expected to ensure
better capacity utilization and growth while demanding
near term liquidity support.
In the home market, we have been maintaining our
leadership position in the CD segment and have
increased our market share in DVD segment. The Blu-ray
disc adoption has also been slowly increasing in the
country.
Given the liquidity constrained manufacturing
environment and the need to become more working
capital efficient, Moser Baer was able to reduce inventory
levels to meet part of the overall market demand.
4 5
BOARD OF DIRECTORS
MR. DEEPAK PURI
Chairman & Managing Director
MRS. NITA PURI
Whole Time Director
MR. JOHN LEVACK
Non-Executive and Nominee Director
MR. BERNARD GALLUS
Independent and Non-Executive Director
MR. VINEET SHARMA
Independent and Non-Executive Director
MR. SANJAY JAIN
Additional Director
MR. K. AJIT KUMAR
Nominee Director
MANAGEMENT DISCUSSION & ANALYSIS
INTRODUCTION
The nine month period (April-December 2013) continued
to be challenging for Moser Baer given the backdrop of a
challenging economic environment. Strong impetus was
given to consolidation measures and restructuring of
operations as we continued to focus on our core
competencies in the Storage Media market and build on
strengths in other businesses for sustainable
development, encouraging and supporting value creation
for our stakeholders in the long term.
As per IMF’s World Economic Outlook (April 2014) report,
World output growth declined for the third consecutive
year to 3.0% in 2013 from 4.0% in 2011. For the third year
in succession, Emerging Markets’ output growth lowered
to 4.7% in 2013 from 6.4% in 2011. Activity in many
emerging market economies has been disappointing,
although they continue to contribute to more than two-
thirds of global growth. As per IMF, a strong recovery is
expected in 2015 & 2016 for the global economy, Euro
Area and Emerging Markets.
COMPANY OVERVIEW
For the nine month period ended December 31, 2013,
Moser Baer continued to witness financial constraints
and resultant supply chain bottlenecks that affected its
operating performance. Continuous operating losses
during the period whilst working on revival and re-
structuring led to erosion of reserves. Given the need to
transition in the Storage Media industry, the Company’s
focus continued to be on refocusing product lines
accompanied by rationalization of operating costs in
manufacturing and consolidation of operations to
generate cost efficiencies.
• Total Revenue: For the nine month period
ended December 31, 2013, the Company’s
total revenue including other income stood at
INR 10,058 million on a standalone basis
• EBITDA (including other income) stood at INR
706 million for the period
• Cash and Liquidity: Net cash flows from
operating activities stood at INR 313 million
For the nine month period ended December 31, 2013,
Moser Baer’s Business was affected by financial
constraints that affected operations. While the overall
global storage media industry remained largely stable,
there were variations in the geographic and product mix
compared to previous years. Moser Baer’s Storage
Media business undertook several steps that were aimed
at lowering the operating costs and aligning resources to
the current levels of operations.
Moser Baer continues to focus on its key strengths - wide
geographic presence across the World, broad product
portfolio across all formats, strong focus on quality and a
strong distributor network. In a period spanning three
decades, the Company has globally developed itself as a
preferred OEM brand through its high quality and credible
products, supplied across the globe and is thus well
placed to leverage the current and emerging market
opportunities, both in respect of Blank Optical Media as
well as Solid State Storage. Concurrent with this, the
Company continues to retain its presence in the
Domestic pre-recorded segment and leverage its
strength in terms of Brand Franchise as well as
distribution.
The Corporate Debt Restructuring (CDR) schemes of
Moser Baer India Ltd. and its PV subsidiaries have been
approved and are under implementation. Post successful
implementation of the CDR scheme, the Storage Media
business is expected to further ramp up resulting in
improved operational and financial performance.
In the solar PV segment, during 2013 the global industry
showed definitive signs of a turnaround as evident by the
16% Y-o-Y growth in global PV installations to 36 GW
during the year (Solarbuzz).
Demand supply equilibrium in the global PV industry
improved on account of a robust demand from China,
Japan and the US during 2013 and signs of consolidation
in the global PV industry. This improvement in the market
environment led to stabilization in the PV module prices
globally and improvement in the financial/operating
performance of Tier I solar PV manufacturers.
The Indian PV market on the other hand slowed down
marginally in 2013 on account of delay in implementation
of Solar Policies of several States in India. During CY 2013,
the Indian market witnessed 905 MW of solar PV
installations compared to 982 MW in CY 2012. However,
medium to long term outlook of the Indian market
continues to remain strong with over 12 GW of
cumulative solar PV capacity forecast by end of 2016
(Bridge to India).
This improved global macro environment along with a
high potential domestic market provides opportunity to
us to benefit from both these segments, given that we are
the largest integrated PV manufacturer in India. We are
currently focusing on high margin markets such as Japan
and are poised to tap the emerging opportunities in the
domestic and other export markets. In 2013, Moser Baer
Solar became the only high end technology brand from
India to achieve the significant milestone of over INR
1,000 million of PV module sales to Japan during Apr -
Dec 13.
In 2013, Moser Baer Solar Ltd. maintained its leading
position in the solar EPC segment and emerged as the
largest player in India (Bridge to India). It has in total
executed over 260 MW of projects across different PV
technologies and terrains in India and recently, the
company commissioned a 5 MW solar project for a
prestigious PSU in January 2014.
STORAGE MEDIA
STORAGE MEDIA INDUSTRY
During the nine month period ended December 31, 2013,
the ongoing re-alignments in the global Optical Media
industry affected the demand and ASPs for all the top
rung players. While the demand for Optical Media
products declined in the developed markets, countries in
Asia Pacific, Africa, Middle East & Latin America regions
continued to develop as stable demand centers.
New generation Optical Media products like Blu-ray
continue to witness broad based growth in demand in
mature markets such as Japan, USA and Europe while the
demand for the first generation products such as CDs
have started witnessing a downtrend. Emerging Markets
(including the home market), on the other hand remain
stable for DVDs & Blu Ray products.
The Storage Media business includes Solid State Media
segment (Flash Drives, SD and Micro SD cards) which has
witnessed high growth in India and is growing globally
due to ease of use and declining per unit costs. Rapid
penetration of personal computing devices in the
developing markets and robust increase in demand for
smart phones globally is also driving up demand in the
segment.
MOSER BAER’S STORAGE MEDIA BUSINESS
Moser Baer continues to remain one of the leading
players in the global Storage Media industry both in terms
of low cost mass manufacturing and in offering a wide
range of high quality products spread across all formats.
The Company on the back of its high quality standards
and strong service offering continues to maintain
business alliances with leading OEMs across the world.
The company continues to supply its products across all
regions of the World.
Given the need to transition in the Optical Media industry,
our focus continued to be on rationalization of operating
costs in manufacturing and consolidation of operations to
generate cost efficiencies.
We are aggressively pursuing new geographies to
capture incremental markets and acquire new customers
and expect our Non-OEM market share to increase in the
medium term. Going forward, this is expected to ensure
better capacity utilization and growth while demanding
near term liquidity support.
In the home market, we have been maintaining our
leadership position in the CD segment and have
increased our market share in DVD segment. The Blu-ray
disc adoption has also been slowly increasing in the
country.
Given the liquidity constrained manufacturing
environment and the need to become more working
capital efficient, Moser Baer was able to reduce inventory
levels to meet part of the overall market demand.
6 7
Our ability to ramp up the Solid State Media (SSM)
operations further to cater to the burgeoning demand in
the segment is currently constrained on account of short
term liquidity issues. Moser Baer as a brand has been
strong in this segment and we expect an upswing in the
segment with infusion of liquidity under CDR. We have
also received OEM endorsement which we propose to
leverage for volume growth.
During the period under consideration, we continued to
expand our product offerings with a range of innovative
product offerings to our existing OEM customers as well
as towards the Non-OEM market. We continue to focus
on the corporate segment and Retail products for gifting
on special occasions and festivals. The Data Security
products of the Company also witnessed strong growth.
Our products ‘Silico’, ‘Racer’ and ‘Ripple’ have been very
well received by the market.
Moser Baer has collaborated with Giesecke & Devrient (G
& D) which is amongst the world’s Top 3 players in smart
cards/ SIM solutions to manufacture and supply security
tokens, smart cards and SIM cards. This is a growing
segment since secure digital signature is going to be a
way of life for all e-governance activities as well as
Income Tax filings.
Moser Baer is also one of the chosen suppliers to
government customers through National Informatics
Centre (NIC).Through the intervention of the Reserve
Bank of India, the company is seeking to capture the
security tokens business in all public sector banks under
the domestic manufacturing preference policy of the
Government.
In order to improve internal efficiencies yet retain a
significant brand franchise, the company took further
steps to rationalize its Home Entertainment Business. We
have taken pro-active steps to consolidate the business
and scale down our footprint while reducing operating
costs including those relating to supply chain and
manpower. In the process, the distribution network and
resources are being synergized for better cost
management and control. Further, in order to de-risk the
business model, fresh content is only being acquired on a
revenue sharing basis in order to limit the initial
acquisition cost.
The Company has undertaken several steps aimed at
improving material efficiencies while concurrently
lowering the operating and overhead costs & aligning
resources with current levels of operations. In the
process, the Company has successfully consolidated all
its manufacturing facilities for better resources
utilization/optimization & to extract supply chain
synergies. The current leaner setup benefits us both
through lower plant energy loads and lower fixed
overheads. We are also working towards rationalizing our
power sourcing for further cost optimization. These steps
are expected to positively impact the company’s
operations in the near to medium term.
OUTLOOK
In the medium term, the Optical Media industry within the
developed markets is expected to witness a decline in
demand for the first generation products CDs/DVDs while
some growth in demand is expected for the high margin
advanced formats such as Blu-ray discs. In the emerging
markets, such as Africa, Latin America etc, the demand
for DVDs is expected to remain stable in the near to
medium term. In the home market, Moser Baer is
increasing its market share in the DVD segment while
consolidating its volumes in the CD segment.
Furthermore, with potential improvement in liquidity as
well as cost rationalization, we plan to compete for
market share in selected markets, both through OEM and
non-OEM channels.
In the near future, the Solid State Media segment is
expected to be a key growth driver given the robust
market demand and strong brand equity of Moser Baer. In
the Security Token business, the government has taken
steps to have increased security for e-governance and
has advised the use of USB security tokens even in Class
II in addition to Class III Digital Signatures. This is
expected to multiply the market in the medium term.
Steady growth in capacity utilization driven by liquidity
support would be a key success factor.
The Company continues to focus on product innovation,
upholding of its high quality standards, increase in its cost
competitiveness and widening of its distribution network.
SOLAR PHOTOVOLTAIC
PHOTOVOLTAIC (PV) INDUSTRY
In CY 2013, the global solar PV industry emerged out of
the downturn that started from early 2011 and was
characterized by relentless price declines, triggered by
massive increase in capacity by the Chinese
manufacturers.
The turnaround in the global PV industry that started in the
first half of CY 2013 gathered momentum during the
second half of the year. Global PV installations are
estimated to have increased by about 16% to reach 36
GW by the end of CY 2013 (Solarbuzz). Global PV
installations during Q4 CY 2013 are estimated to have
exceeded the 12 GW barrier for the first time ever.
The improvement in the global PV industry was
accompanied with reversal in performance of Tier I global
players along with the exit of less competitive Tier II/Tier
III players. Gross margins of Tier I players stood at ~20%
by the end of CY 2013.
This improvement in the financial performance of Tier I
players was on account of stabilizing module prices,
increase in market shares and continuous reduction in
manufacturing costs. Market share of Tier I players stood
at over 70% by the end of CY 2013.
Evolution of Global Cumulative Installed PV Capacity -
2000-2013 (Figures in GW)
Source: EPIA/(Solarbuzz for CY 2013 figure)
Reversal Triggered by Strong Demand from USA, Japan
and China
The turnaround in the global PV industry was primarily
driven by strong increase in demand from the US, Japan
and Chinese markets. As per Solarbuzz, solar PV
installations in the US grew by 15% Y-o-Y reaching 4.2 GW
in CY 2013. Demand in the US market was largely driven
by the improving economics of solar power amidst high
cost of conventional power in the country.
PV installations in the Chinese market are estimated to
have reached 12 GW in CY 2013, up by about 140% Y-o-Y
(BNEF). The Chinese market was spurred by the Chinese
Government’s ambitious solar target of 35 GW of
cumulative solar PV capacity by 2015.
As per industry estimates, solar PV installations in Japan
are expected to reach 7 GW in CY 2013, up from about 2
GW in CY 2012. This robust increase in the Japan market
was in response to the attractive feed-in-tariffs
announced by Japan in 2012 in order to phase out nuclear
power and substitute the same with solar energy.
Solar Power Inches Closer to Grid Parity
During 2013, solar power globally made long strides
towards achieving parity with conventional sources of
power. As per Deutsche Bank, Solar is currently
competitive without subsidies in at least 19 markets
globally and more markets are expected to reach grid
parity in 2014 as system prices decline further. This
further decline in systems prices is forecast on account of
the anticipated decline in Balance of Systems costs and
stabilization in module prices at current levels. The
stabilization of module prices amidst increasing demand
is on account of sustained reduction in the cost structure
of PV manufacturers.
As per Solarbuzz, LCOE for solar photovoltaic (PV)
systems is coming closer to retail electricity prices in the
United States. In the US, Solar PV is already competitive
with Tier 4 or 5 electricity rates at which power is
consumed by commercial customers. PV is already
cheaper in certain States, with prices for PV plants larger
than 100 kW roughly half of retail electricity rates.
In the Indian market too, declining solar tariffs along with
increasing prices of conventional energy has brought
closer parity for solar power with conventional sources of
energy. As per Bridge to India, Solar power is close to
parity with commercial tariff paid by consumers in the
States of Delhi, Maharashtra and Kerala. By 2016, over
45% of the Indian states are expected to achieve
commercial parity. In other states such as Andhra
Pradesh, Odisha, Gujarat, West Bengal and Rajasthan,
solar for commercial consumers is competitive with grid
electricity with the help of subsidies.
Restrictions on Chinese PV Exports to the European
Union
In December 2013, the European Union approved a two
year trade protection deal with China to curb imports of
Chinese solar panels into the region. As per the terms of
the deal, exports of solar PV cells and modules from
Chinese PV manufacturers to the EU are limited to 7 GW
per year. Chinese manufacturers that participated in the
agreement provided a minimum price undertaking of
Euro 0.56/watt and as a result were spared of being levied
any anti dumping duties. For Solar modules/cells
manufactured by producer-exporters that did not
subscribe to a price undertaking, the Anti-dumping duties
range from 36.2% to 53.4% and the Countervailing duties
range from 6.4% to 11.5%
This resulted in providing opportunity to PV
manufacturers from other regions including India to
participate in the European PV market.
Chinese Government Domestic Support Measures
Curbing Oversupply
In a move to curb market oversupply and increase the
quality of its solar manufacturing sector, the Chinese
Government has excluded almost 80% of operating
manufacturers from benefitting from the domestic
support measures. The Ministry of Industry and
Information Technology (MIIT) received 500 applications
for the list “photovoltaic manufacturing industry norms
conditions” - approved companies that can continue to
take part in state-run tenders and support mechanisms.
Out of the 500 applications, an initial list of 134
companies was released in November 2013 and a final list
of 109 companies published on 30 December 2013
following expert review which can benefit from the
domestic policy support, take part in domestic tenders
and benefit from export tax rebates.
Indian Solar Market
In CY 2013, the Indian solar market marginally slowed
down as only 950 MW of PV installations took place,
down from 982 MW of PV installations in 2012.
Cumulative solar PV capacity in India reached 2.1 GW by
end of CY 2013 (Bridge to India). This slowdown in the
Indian PV market was primarily on account of delay in
implementation of solar policies of several States. Delay
in implementation of the Phase II Batch I of the JNNSM is
also expected to impact the PV market in 2014.
160
140
120
100
80
60
40
20
0
2000
1.4 1.8 2.2 2.8 4 5.4 6.9 9.516.2
23.6
40.7
71.1
102.2
138.2
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E
6 7
Our ability to ramp up the Solid State Media (SSM)
operations further to cater to the burgeoning demand in
the segment is currently constrained on account of short
term liquidity issues. Moser Baer as a brand has been
strong in this segment and we expect an upswing in the
segment with infusion of liquidity under CDR. We have
also received OEM endorsement which we propose to
leverage for volume growth.
During the period under consideration, we continued to
expand our product offerings with a range of innovative
product offerings to our existing OEM customers as well
as towards the Non-OEM market. We continue to focus
on the corporate segment and Retail products for gifting
on special occasions and festivals. The Data Security
products of the Company also witnessed strong growth.
Our products ‘Silico’, ‘Racer’ and ‘Ripple’ have been very
well received by the market.
Moser Baer has collaborated with Giesecke & Devrient (G
& D) which is amongst the world’s Top 3 players in smart
cards/ SIM solutions to manufacture and supply security
tokens, smart cards and SIM cards. This is a growing
segment since secure digital signature is going to be a
way of life for all e-governance activities as well as
Income Tax filings.
Moser Baer is also one of the chosen suppliers to
government customers through National Informatics
Centre (NIC).Through the intervention of the Reserve
Bank of India, the company is seeking to capture the
security tokens business in all public sector banks under
the domestic manufacturing preference policy of the
Government.
In order to improve internal efficiencies yet retain a
significant brand franchise, the company took further
steps to rationalize its Home Entertainment Business. We
have taken pro-active steps to consolidate the business
and scale down our footprint while reducing operating
costs including those relating to supply chain and
manpower. In the process, the distribution network and
resources are being synergized for better cost
management and control. Further, in order to de-risk the
business model, fresh content is only being acquired on a
revenue sharing basis in order to limit the initial
acquisition cost.
The Company has undertaken several steps aimed at
improving material efficiencies while concurrently
lowering the operating and overhead costs & aligning
resources with current levels of operations. In the
process, the Company has successfully consolidated all
its manufacturing facilities for better resources
utilization/optimization & to extract supply chain
synergies. The current leaner setup benefits us both
through lower plant energy loads and lower fixed
overheads. We are also working towards rationalizing our
power sourcing for further cost optimization. These steps
are expected to positively impact the company’s
operations in the near to medium term.
OUTLOOK
In the medium term, the Optical Media industry within the
developed markets is expected to witness a decline in
demand for the first generation products CDs/DVDs while
some growth in demand is expected for the high margin
advanced formats such as Blu-ray discs. In the emerging
markets, such as Africa, Latin America etc, the demand
for DVDs is expected to remain stable in the near to
medium term. In the home market, Moser Baer is
increasing its market share in the DVD segment while
consolidating its volumes in the CD segment.
Furthermore, with potential improvement in liquidity as
well as cost rationalization, we plan to compete for
market share in selected markets, both through OEM and
non-OEM channels.
In the near future, the Solid State Media segment is
expected to be a key growth driver given the robust
market demand and strong brand equity of Moser Baer. In
the Security Token business, the government has taken
steps to have increased security for e-governance and
has advised the use of USB security tokens even in Class
II in addition to Class III Digital Signatures. This is
expected to multiply the market in the medium term.
Steady growth in capacity utilization driven by liquidity
support would be a key success factor.
The Company continues to focus on product innovation,
upholding of its high quality standards, increase in its cost
competitiveness and widening of its distribution network.
SOLAR PHOTOVOLTAIC
PHOTOVOLTAIC (PV) INDUSTRY
In CY 2013, the global solar PV industry emerged out of
the downturn that started from early 2011 and was
characterized by relentless price declines, triggered by
massive increase in capacity by the Chinese
manufacturers.
The turnaround in the global PV industry that started in the
first half of CY 2013 gathered momentum during the
second half of the year. Global PV installations are
estimated to have increased by about 16% to reach 36
GW by the end of CY 2013 (Solarbuzz). Global PV
installations during Q4 CY 2013 are estimated to have
exceeded the 12 GW barrier for the first time ever.
The improvement in the global PV industry was
accompanied with reversal in performance of Tier I global
players along with the exit of less competitive Tier II/Tier
III players. Gross margins of Tier I players stood at ~20%
by the end of CY 2013.
This improvement in the financial performance of Tier I
players was on account of stabilizing module prices,
increase in market shares and continuous reduction in
manufacturing costs. Market share of Tier I players stood
at over 70% by the end of CY 2013.
Evolution of Global Cumulative Installed PV Capacity -
2000-2013 (Figures in GW)
Source: EPIA/(Solarbuzz for CY 2013 figure)
Reversal Triggered by Strong Demand from USA, Japan
and China
The turnaround in the global PV industry was primarily
driven by strong increase in demand from the US, Japan
and Chinese markets. As per Solarbuzz, solar PV
installations in the US grew by 15% Y-o-Y reaching 4.2 GW
in CY 2013. Demand in the US market was largely driven
by the improving economics of solar power amidst high
cost of conventional power in the country.
PV installations in the Chinese market are estimated to
have reached 12 GW in CY 2013, up by about 140% Y-o-Y
(BNEF). The Chinese market was spurred by the Chinese
Government’s ambitious solar target of 35 GW of
cumulative solar PV capacity by 2015.
As per industry estimates, solar PV installations in Japan
are expected to reach 7 GW in CY 2013, up from about 2
GW in CY 2012. This robust increase in the Japan market
was in response to the attractive feed-in-tariffs
announced by Japan in 2012 in order to phase out nuclear
power and substitute the same with solar energy.
Solar Power Inches Closer to Grid Parity
During 2013, solar power globally made long strides
towards achieving parity with conventional sources of
power. As per Deutsche Bank, Solar is currently
competitive without subsidies in at least 19 markets
globally and more markets are expected to reach grid
parity in 2014 as system prices decline further. This
further decline in systems prices is forecast on account of
the anticipated decline in Balance of Systems costs and
stabilization in module prices at current levels. The
stabilization of module prices amidst increasing demand
is on account of sustained reduction in the cost structure
of PV manufacturers.
As per Solarbuzz, LCOE for solar photovoltaic (PV)
systems is coming closer to retail electricity prices in the
United States. In the US, Solar PV is already competitive
with Tier 4 or 5 electricity rates at which power is
consumed by commercial customers. PV is already
cheaper in certain States, with prices for PV plants larger
than 100 kW roughly half of retail electricity rates.
In the Indian market too, declining solar tariffs along with
increasing prices of conventional energy has brought
closer parity for solar power with conventional sources of
energy. As per Bridge to India, Solar power is close to
parity with commercial tariff paid by consumers in the
States of Delhi, Maharashtra and Kerala. By 2016, over
45% of the Indian states are expected to achieve
commercial parity. In other states such as Andhra
Pradesh, Odisha, Gujarat, West Bengal and Rajasthan,
solar for commercial consumers is competitive with grid
electricity with the help of subsidies.
Restrictions on Chinese PV Exports to the European
Union
In December 2013, the European Union approved a two
year trade protection deal with China to curb imports of
Chinese solar panels into the region. As per the terms of
the deal, exports of solar PV cells and modules from
Chinese PV manufacturers to the EU are limited to 7 GW
per year. Chinese manufacturers that participated in the
agreement provided a minimum price undertaking of
Euro 0.56/watt and as a result were spared of being levied
any anti dumping duties. For Solar modules/cells
manufactured by producer-exporters that did not
subscribe to a price undertaking, the Anti-dumping duties
range from 36.2% to 53.4% and the Countervailing duties
range from 6.4% to 11.5%
This resulted in providing opportunity to PV
manufacturers from other regions including India to
participate in the European PV market.
Chinese Government Domestic Support Measures
Curbing Oversupply
In a move to curb market oversupply and increase the
quality of its solar manufacturing sector, the Chinese
Government has excluded almost 80% of operating
manufacturers from benefitting from the domestic
support measures. The Ministry of Industry and
Information Technology (MIIT) received 500 applications
for the list “photovoltaic manufacturing industry norms
conditions” - approved companies that can continue to
take part in state-run tenders and support mechanisms.
Out of the 500 applications, an initial list of 134
companies was released in November 2013 and a final list
of 109 companies published on 30 December 2013
following expert review which can benefit from the
domestic policy support, take part in domestic tenders
and benefit from export tax rebates.
Indian Solar Market
In CY 2013, the Indian solar market marginally slowed
down as only 950 MW of PV installations took place,
down from 982 MW of PV installations in 2012.
Cumulative solar PV capacity in India reached 2.1 GW by
end of CY 2013 (Bridge to India). This slowdown in the
Indian PV market was primarily on account of delay in
implementation of solar policies of several States. Delay
in implementation of the Phase II Batch I of the JNNSM is
also expected to impact the PV market in 2014.
160
140
120
100
80
60
40
20
0
2000
1.4 1.8 2.2 2.8 4 5.4 6.9 9.516.2
23.6
40.7
71.1
102.2
138.2
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E
8 9
During 2013, the Indian solar market was also adversely
affected by the non-enforcement of the Solar Purchase
Obligations (SPO) of obligated entities such as the
distribution companies, open access users and captive
consumers in majority of the States in India. This
undermined the effectiveness of and confidence in the
Renewable Energy Certificates (REC) mechanism. An
implication of this was the pile up of RECs, which
adversely affected viability of solar projects that were set
up under the REC mechanism. While several regulatory
agencies and judicial authorities have taken steps to
ensure enforcement of the SPOs, much more is required
to maintain the relevance of the REC mechanism and
leverage it to promote growth of solar power in India.
While the Indian solar PV domestic manufacturing
environment improved marginally during 2013 on
account of increase in capacity utilization rates of some of
the module manufacturers, the cell manufacturing
segment remained muted as capacity utilizations
remained low on account of intense competition from
dumped products from markets such as China.
The imposition of Domestic Content Regulation (DCR) –
announced in October 2013 – was a positive step for the
domestic manufacturers. However the industry also
needs protection from dumped solar products imported
from certain markets, through imposition of Anti
Dumping Duties. This is pivotal for the development of a
robust domestic manufacturing ecosystem, which is
required to ensure energy security for India in the medium
to long term. Development of a cohesive and self
sustaining domestic solar manufacturing eco system
would also result in saving of precious foreign exchange
and improvement in India’s current account balance.
Jawaharlal Nehru National Solar Mission (JNNSM)
Under Phase I of the JNNSM, a solar PV capacity of 450
MW was installed in India by end of September 2013
against the targeted capacity of 500 MW (Bridge to India).
Separately, 48 MW of PV projects were commissioned
under the Migration scheme and 90.8 MW under the
Rooftop PV and Small Solar Power Generation
Programme (RPSSGP) Scheme.
The Ministry of New and Renewable Energy released the
draft guidelines for 750 MW of solar projects under Phase
II Batch I of the JNNSM in April 2013. However, the
release of final implementation guidelines was made only
in October 2013. The delay in announcement of final
guidelines would result in no significant capacity addition
under the JNNSM in CY 2014.
Under the final implementation guidelines, 375 MW of
the targeted 750 MW of solar projects need to be
developed using domestically manufactured solar cells
and modules. This provides an opportunity to domestic
cell manufacturers to increase their utilization rates and
participate in the implementation of Phase II of the
JNNSM.
Bidding for these 750 MW of projects took place in
January 2014 in which 700 MW of bids were made for
projects under the Domestic Content Regulations (DCR)
category and bids totaling 1470 MW were made for the
Open Category projects. Implementation of these 750
MW of projects under Phase II Batch I of the JNNSM is
targeted to take place by May 2015.
While DCR was introduced in the Phase II Batch I of the
JNNSM, the announcement of decision on the outcome
of the Anti Dumping Investigations against the import of
solar cells and modules from USA, China, Malaysia and
Taiwan that was expected in the last quarter of CY 2013
was delayed.
The domestic solar manufacturing industry that is reeling
under the impact of export of solar PV cells and modules
from specific markets at dumped prices need the
simultaneous protection in the form of Anti Dumping
Duties and imposition of Domestic Content Regulation.
This is pivotal to achieve MNRE’s target to develop a
domestic manufacturing base with a capacity of 5,000
MW by 2017.
Providing a further push to solar energy, the Finance
Minister, in the interim budget for 2014-15, added 4 Ultra
Mega Solar Power Projects each with the capacity of over
500 MW to the National Solar Mission in 2014-15.
MOSER BAER’S PV BUSINESS
Moser Baer maintains its position as one of the largest
solar PV manufacturers in India that is present across the
solar value chain. Our annual cell and module
manufacturing capacity currently stands at ~200 MW.
Moser Baer Solar was earlier conferred with the
prestigious “5 Star Rating” by TÜV Rheinland for
maintaining highest standards of quality in manufacturing
for three consecutive years in a row, the only Solar
company in the world to achieve this feat.
Continuous dumping of solar products at predatory
prices by certain countries has resulted in manufacturing
operations, particularly in relation to Cells becoming
unviable in India. As a result of this, we are currently
operating at lower capacity utilization levels. We continue
to align our costs with the current level of operations to
improve the business efficiency.
Strong demand from the Japanese market and the
limitation on Chinese PV exports to Europe provides
opportunity to us to increase our scale of operations. The
imposition of DCR in JNNSM Phase II Batch I is another
positive for domestic manufacturers like us and we await
a positive development on the Anti Dumping Duty front,
which would provide a level playing field to domestic
manufacturers.
We plan to ramp up our operations in line with the
emerging opportunities in the Indian market &
announcement of key Government policy initiatives.
Continued liquidity support would enable rapid ramp up
of capacity utilization.
Moser Baer’s PV Business continues to maintain its
leadership position in the Indian solar EPC market with
over 260 MW of projects installed till date. The EPC
Business enjoys strong presence in the off-grid market as
well with over 4 MW of installations already
commissioned. The Company has been able to achieve
marked decline in project execution times and steep
reduction in project costs on the back of its strong
expertise in the EPC business.
The Company completed commissioning of a 5MW solar
project for a prestigious PSU in January 2014.
Our strong presence in the Indian solar PV market,
integrated operations, high quality profile and strong
brand value position us to benefit from the high potential
Indian market in both the off-grid and utility scale markets
in the years to come.
The Company is also qualified under the Special Incentive
Package Scheme notified by the government in 2007 to
boost the semiconductor manufacturing sector; the
government’s detailed diligence process for technical &
financial validation and final sanction is ongoing.
The Corporate Debt Restructuring (CDR) schemes of
Moser Baer’s PV subsidiaries (Moser Baer Solar Ltd. and
Helios Photo Voltaic Ltd.-formerly known as Moser Baer
Photo Voltaic Limited) aimed at optimizing the current
resources and aligning the current debt obligations with
the expected future cash flows are currently under
implementation. Definitive agreements have been signed
for both the subsidiaries by majority of the lenders and
other implementation formalities including security
perfection are currently being worked upon. During this
period however, the Company had to face a significant
liquidity crunch, pending release of working capital limits
from Banks. This, in turn, resulted in significant drop in
capacity utilization and operating levels, and the
Company was not able to take advantage of the various
market opportunities for manufacturing and systems
business.
While progress so far has been limited by the
development of government policy measures, some of
the key initiatives on DCR and anti-dumping duty are
expected to boost revival assuming also crucial liquidity
support is available in the near to medium term.
OUTLOOK
Solar Power – Strong Medium to Long Term Outlook
The global solar PV market’s recent turnaround is
expected to continue in CY 2014. During Oct 2013-Mar
2014, the solar PV industry is forecast to install almost 22
GW, with CY 2014 installation demand forecast at 49 GW
(Solarbuzz). The global solar market, that took several
years to reach a cumulative installed capacity of 100 GW
by the end of CY 2012, is forecast to add a similar capacity
during CY 2014 and CY 2015 only.
As per Solarbuzz, this new record level of anticipated
demand in 2014 will drive capacity utilization rates above
90% for Tier I manufacturers.
Long term outlook for solar power also seems strong on
account of rapid global urbanization, strong population
growth, and energy security concerns that are expected
to boost adoption of solar power globally. Solar PV is
forecast to account for 3.6% of the installed power
generation globally by 2020, up from 0.7% in 2010 (Frost
& Sullivan).
For the Indian PV market, while the medium-long term
outlook remains strong, the short term situation has been
impacted on account of delays in implementation relating
to several State policies and partially on account of delays
in release of final guidelines under the JNNSM. Current
non enforcement relating to meeting of Solar Purchase
Obligations by the obligated entities is also posing a risk
to the planned development of solar power in India.
Critical enablers include the successful implementation
of DCR and the imposition of a suitable Anti Dumping
Duty structure.
Despite some of these short term challenges, the higher
solar irradiation, severe shortage of electricity, rising
prices of conventional power to achieve inclusive growth
of un-electrified villages across India and increasing
economics of solar power are likely to ensure strong
growth of solar power in India.
FINANCIAL RESTRUCTURING
The CDR scheme of MBIL as well as of its PV companies
has been approved in the previous financial year. A debt of
INR 23,700 million for Moser Baer India Ltd., INR 8,650
million for Moser Baer Photo Voltaic Ltd. and of INR 9,560
million for Moser Baer Solar Ltd. has been restructured,
additional funds provided and interest funded.
The re-structuring of Moser Baer India Limited (MBIL)
was based on a Techno-Economic Valuation study which
was conducted by an independent third party consultant
appointed by Central Bank of India (CBoI) and involved a
detailed viability analysis of the industry, competition,
future cash flows of the company and the new
technology initiatives.
The Company had executed the Master Restructuring
Agreement (MRA) / other definitive documents with all
(except two) lender banks on December 27, 2012 and had
also fulfilled pre-required conditions for implementation
of the CDR Scheme. Subsequently an amended MRA
was signed on March 30, 2013 in relation to UCO Bank.
Accordingly, the CDR scheme was accounted for in the
books of accounts in the financial year ended March 31,
2013 and the Scheme continues to be under
implementation in the current financial year. During the
year, the account with a non-acceding lender was settled
in accordance with the Scheme, with the consent of other
CDR lenders to facilitate security perfection. The
company made significant progress on perfection of
security and is also ensuring compliance with other CDR
conditions.
8 9
During 2013, the Indian solar market was also adversely
affected by the non-enforcement of the Solar Purchase
Obligations (SPO) of obligated entities such as the
distribution companies, open access users and captive
consumers in majority of the States in India. This
undermined the effectiveness of and confidence in the
Renewable Energy Certificates (REC) mechanism. An
implication of this was the pile up of RECs, which
adversely affected viability of solar projects that were set
up under the REC mechanism. While several regulatory
agencies and judicial authorities have taken steps to
ensure enforcement of the SPOs, much more is required
to maintain the relevance of the REC mechanism and
leverage it to promote growth of solar power in India.
While the Indian solar PV domestic manufacturing
environment improved marginally during 2013 on
account of increase in capacity utilization rates of some of
the module manufacturers, the cell manufacturing
segment remained muted as capacity utilizations
remained low on account of intense competition from
dumped products from markets such as China.
The imposition of Domestic Content Regulation (DCR) –
announced in October 2013 – was a positive step for the
domestic manufacturers. However the industry also
needs protection from dumped solar products imported
from certain markets, through imposition of Anti
Dumping Duties. This is pivotal for the development of a
robust domestic manufacturing ecosystem, which is
required to ensure energy security for India in the medium
to long term. Development of a cohesive and self
sustaining domestic solar manufacturing eco system
would also result in saving of precious foreign exchange
and improvement in India’s current account balance.
Jawaharlal Nehru National Solar Mission (JNNSM)
Under Phase I of the JNNSM, a solar PV capacity of 450
MW was installed in India by end of September 2013
against the targeted capacity of 500 MW (Bridge to India).
Separately, 48 MW of PV projects were commissioned
under the Migration scheme and 90.8 MW under the
Rooftop PV and Small Solar Power Generation
Programme (RPSSGP) Scheme.
The Ministry of New and Renewable Energy released the
draft guidelines for 750 MW of solar projects under Phase
II Batch I of the JNNSM in April 2013. However, the
release of final implementation guidelines was made only
in October 2013. The delay in announcement of final
guidelines would result in no significant capacity addition
under the JNNSM in CY 2014.
Under the final implementation guidelines, 375 MW of
the targeted 750 MW of solar projects need to be
developed using domestically manufactured solar cells
and modules. This provides an opportunity to domestic
cell manufacturers to increase their utilization rates and
participate in the implementation of Phase II of the
JNNSM.
Bidding for these 750 MW of projects took place in
January 2014 in which 700 MW of bids were made for
projects under the Domestic Content Regulations (DCR)
category and bids totaling 1470 MW were made for the
Open Category projects. Implementation of these 750
MW of projects under Phase II Batch I of the JNNSM is
targeted to take place by May 2015.
While DCR was introduced in the Phase II Batch I of the
JNNSM, the announcement of decision on the outcome
of the Anti Dumping Investigations against the import of
solar cells and modules from USA, China, Malaysia and
Taiwan that was expected in the last quarter of CY 2013
was delayed.
The domestic solar manufacturing industry that is reeling
under the impact of export of solar PV cells and modules
from specific markets at dumped prices need the
simultaneous protection in the form of Anti Dumping
Duties and imposition of Domestic Content Regulation.
This is pivotal to achieve MNRE’s target to develop a
domestic manufacturing base with a capacity of 5,000
MW by 2017.
Providing a further push to solar energy, the Finance
Minister, in the interim budget for 2014-15, added 4 Ultra
Mega Solar Power Projects each with the capacity of over
500 MW to the National Solar Mission in 2014-15.
MOSER BAER’S PV BUSINESS
Moser Baer maintains its position as one of the largest
solar PV manufacturers in India that is present across the
solar value chain. Our annual cell and module
manufacturing capacity currently stands at ~200 MW.
Moser Baer Solar was earlier conferred with the
prestigious “5 Star Rating” by TÜV Rheinland for
maintaining highest standards of quality in manufacturing
for three consecutive years in a row, the only Solar
company in the world to achieve this feat.
Continuous dumping of solar products at predatory
prices by certain countries has resulted in manufacturing
operations, particularly in relation to Cells becoming
unviable in India. As a result of this, we are currently
operating at lower capacity utilization levels. We continue
to align our costs with the current level of operations to
improve the business efficiency.
Strong demand from the Japanese market and the
limitation on Chinese PV exports to Europe provides
opportunity to us to increase our scale of operations. The
imposition of DCR in JNNSM Phase II Batch I is another
positive for domestic manufacturers like us and we await
a positive development on the Anti Dumping Duty front,
which would provide a level playing field to domestic
manufacturers.
We plan to ramp up our operations in line with the
emerging opportunities in the Indian market &
announcement of key Government policy initiatives.
Continued liquidity support would enable rapid ramp up
of capacity utilization.
Moser Baer’s PV Business continues to maintain its
leadership position in the Indian solar EPC market with
over 260 MW of projects installed till date. The EPC
Business enjoys strong presence in the off-grid market as
well with over 4 MW of installations already
commissioned. The Company has been able to achieve
marked decline in project execution times and steep
reduction in project costs on the back of its strong
expertise in the EPC business.
The Company completed commissioning of a 5MW solar
project for a prestigious PSU in January 2014.
Our strong presence in the Indian solar PV market,
integrated operations, high quality profile and strong
brand value position us to benefit from the high potential
Indian market in both the off-grid and utility scale markets
in the years to come.
The Company is also qualified under the Special Incentive
Package Scheme notified by the government in 2007 to
boost the semiconductor manufacturing sector; the
government’s detailed diligence process for technical &
financial validation and final sanction is ongoing.
The Corporate Debt Restructuring (CDR) schemes of
Moser Baer’s PV subsidiaries (Moser Baer Solar Ltd. and
Helios Photo Voltaic Ltd.-formerly known as Moser Baer
Photo Voltaic Limited) aimed at optimizing the current
resources and aligning the current debt obligations with
the expected future cash flows are currently under
implementation. Definitive agreements have been signed
for both the subsidiaries by majority of the lenders and
other implementation formalities including security
perfection are currently being worked upon. During this
period however, the Company had to face a significant
liquidity crunch, pending release of working capital limits
from Banks. This, in turn, resulted in significant drop in
capacity utilization and operating levels, and the
Company was not able to take advantage of the various
market opportunities for manufacturing and systems
business.
While progress so far has been limited by the
development of government policy measures, some of
the key initiatives on DCR and anti-dumping duty are
expected to boost revival assuming also crucial liquidity
support is available in the near to medium term.
OUTLOOK
Solar Power – Strong Medium to Long Term Outlook
The global solar PV market’s recent turnaround is
expected to continue in CY 2014. During Oct 2013-Mar
2014, the solar PV industry is forecast to install almost 22
GW, with CY 2014 installation demand forecast at 49 GW
(Solarbuzz). The global solar market, that took several
years to reach a cumulative installed capacity of 100 GW
by the end of CY 2012, is forecast to add a similar capacity
during CY 2014 and CY 2015 only.
As per Solarbuzz, this new record level of anticipated
demand in 2014 will drive capacity utilization rates above
90% for Tier I manufacturers.
Long term outlook for solar power also seems strong on
account of rapid global urbanization, strong population
growth, and energy security concerns that are expected
to boost adoption of solar power globally. Solar PV is
forecast to account for 3.6% of the installed power
generation globally by 2020, up from 0.7% in 2010 (Frost
& Sullivan).
For the Indian PV market, while the medium-long term
outlook remains strong, the short term situation has been
impacted on account of delays in implementation relating
to several State policies and partially on account of delays
in release of final guidelines under the JNNSM. Current
non enforcement relating to meeting of Solar Purchase
Obligations by the obligated entities is also posing a risk
to the planned development of solar power in India.
Critical enablers include the successful implementation
of DCR and the imposition of a suitable Anti Dumping
Duty structure.
Despite some of these short term challenges, the higher
solar irradiation, severe shortage of electricity, rising
prices of conventional power to achieve inclusive growth
of un-electrified villages across India and increasing
economics of solar power are likely to ensure strong
growth of solar power in India.
FINANCIAL RESTRUCTURING
The CDR scheme of MBIL as well as of its PV companies
has been approved in the previous financial year. A debt of
INR 23,700 million for Moser Baer India Ltd., INR 8,650
million for Moser Baer Photo Voltaic Ltd. and of INR 9,560
million for Moser Baer Solar Ltd. has been restructured,
additional funds provided and interest funded.
The re-structuring of Moser Baer India Limited (MBIL)
was based on a Techno-Economic Valuation study which
was conducted by an independent third party consultant
appointed by Central Bank of India (CBoI) and involved a
detailed viability analysis of the industry, competition,
future cash flows of the company and the new
technology initiatives.
The Company had executed the Master Restructuring
Agreement (MRA) / other definitive documents with all
(except two) lender banks on December 27, 2012 and had
also fulfilled pre-required conditions for implementation
of the CDR Scheme. Subsequently an amended MRA
was signed on March 30, 2013 in relation to UCO Bank.
Accordingly, the CDR scheme was accounted for in the
books of accounts in the financial year ended March 31,
2013 and the Scheme continues to be under
implementation in the current financial year. During the
year, the account with a non-acceding lender was settled
in accordance with the Scheme, with the consent of other
CDR lenders to facilitate security perfection. The
company made significant progress on perfection of
security and is also ensuring compliance with other CDR
conditions.
10 11
Helios Photo Voltaic Limited (formerly known as Moser
Baer Photo Voltaic Limited),one of the subsidiaries of the
Company had also executed the MRA/ other definitive
documents with all lender banks on January 18, 2013 and
had also fulfilled pre-required conditions for
implementation of the CDR scheme. Accordingly the
CDR scheme was accounted for in the books of the
accounts of MBPV for the year ended March 31, 2013 and
Scheme continues to be under implementation in the
current financial year.
Further Moser Baer Solar Limited (MBSL), another
subsidiary has also executed the MRA/ other definitive
documents with the majority of lender banks on March
28, 2013 and compliance with certain terms and
conditions of the approved debt restructuring scheme
was ongoing. During the current financial year,
considering the signing of MRA by Union Bank of India by
way of deed of accession and Bank of Baroda agreeing to
sign the MRA for revised amount, the CDR scheme has
been accounted for in the books of the accounts of MBSL
for the financial period ended December 31, 2013.
The implementation of CDR signifies the faith reposed by
the lenders in the business viability and long term
prospects of the Company as well as of its PV
subsidiaries.
The outstanding foreign currency convertible bonds
(FCCBs) aggregating to principal value of US$88.5mn
matured for redemption on June 21, 2012, which have
since been claimed by the trustee of the bondholders.
The Company has received approval from RBI for
extension of redemption date of bonds and is in
discussions with the bondholders to re-structure the
terms of these bonds. The trustee on behalf of these
bondholders has filed a petition under section 434 of the
Companies Act, 1956 with Hon’ble High Court of Delhi,
which has since been admitted.
Erosion of Net Worth
As the accumulated losses of the company at the end of stthe financial period ended on 31 December 2013
exceeded its entire net worth, the Company will take
necessary steps to comply with the requirements as per
the applicable statutes for the time being in force.
NEW INITIATIVES IN ENERGY EFFICIENCY
As part of its overall strategy for growth, Moser Baer has
taken its first steps towards foraying into the new Energy
efficient lighting business. The LED market is forecast by
research agencies to witness strong growth over the next
few years globally as well as in India. As per YUANTA, LED
light bulb market is expected to increase at a CAGR of
over 63 % to reach USD 15 billion in 2015 from USD 3.4
billion in 2012. As per Frost & Sullivan, the LED lighting
market in India is expected to grow at a CAGR of 43.9%
from 2011-18.
The overall strategy follows a differentiated approach
covering product innovation, a comprehensive solutions
package and a distinctive market reach coupled with
strong after sales support, in order to establish a strong
presence in the market. The Company has recently
commenced in-house production of LED light bulbs and
LED tube lights. It will focus on various areas including the
OEM segment, own Brand segment & key account
business. During the period under consideration, Moser
Baer bagged a contract for regular supply of LED tube
lights to one of the very prestigious OEMs, which is
amongst the top five lighting companies in India.
Across the globe, government and regulations are
actively supporting the development and deployment of
energy efficient lightning technology. In India, the
government has recently announced steps to develop
and deploy norms that could apply to, inter-alia, LED
Lightning.
LED lighting products as compared to incandescent light
bulbs or CFL’s are more energy efficient, have five to
twenty five times longer lives and are environmentally
safer with no mercury content.
Moser Baer’s LED oriented focus is on developing
technology capabilities in Light Management, Energy
Efficient Optics, Molding and Material Sciences to create
long term sustainable competencies in the business.
Moser Baer’s LED lighting team has in-house product
development, product testing & internal qualification
capabilities, supported by world class light lab facilities.
The Company plans to establish and build its presence in
the LED market on the back of its rich technology
heritage, molding capabilities, strong brand recognition
in the Indian market and a broad distribution network.
OPPORTUNITIES AND THREATS
STORAGE MEDIA
OPPORTUNITIES
?Expected consolidation in the global market in
the near term offers opportunities to the
established players to expand their market
shares. The expected improvement in the
demand-supply balance on account of
consolidation in the global market is also likely
to result in better price realizations in the near to
medium term
?Emergence of new markets, especially in the
Non-OEM segments provides opportunities to
Moser Baer to diversify its demand base
?Continuous growth in the high-margin product
category presents opportunity to us to increase
our market share
?Strong demand for Storage Media products in
India driven by robust sales of computers.
Further, increase in demand for smart phones
with high data storage requirements augurs
well for our Solid State Media segment
?Preference of certain international OEM
customers to diversify their supplier base from
Taiwan provides growth opportunity to Moser
Baer
THREATS
?Sudden spike in prices of key input materials
could affect business’ profitability. The
company has estab l ished s t ra teg ic
relationships with key suppliers to secure
availability of key raw materials.
?Sudden emergence of disruptive technologies
and substitute products can affect demand of
company’s product offerings. Moser Baer
provides strong thrust to its R&D initiatives in
order to remain ahead on the technology curve.
?Aggravation or continuation of the global
financial crisis may adversely affect demand for
the Company’s Storage Media offerings.
?Moreover, regulatory development in
debt/capital markets adversely affecting
interest cost and debt re-structuring may
adversely affect the company’s cash-flow.
?A sharp fall in product prices could impact
business profitability. The Company has been
consistently improving its cost structure and
improving product mix towards higher value
added products. The leadership position in high
value next generation formats should further
improve these returns.
?The company’s business is predominantly
export led with revenues substantially pegged
to foreign currency exchange rate. Any sudden
foreign exchange movement can adversely
affect financial performance during the period.
Management constantly monitors exchange
movement and takes appropriate measures to
mitigate impact.
SOLAR PHOTOVOLTAIC
OPPORTUNITIES
?Improving economics of solar power globally
along with strong focus on sustainable clean
energy sources worldwide provides strong
growth opportunity for solar power
?Strong growth potential in key markets such as
US, China and Japan that have taken centre
stage as the next growth drivers in the global
solar industry
?Strong thrust on solar power in the domestic
market and preference / incentive for
domestically manufactured modules under the
JNNSM
?Expected policy support through protection
from dumped products in the shape of Anti
Dumping Duties would provide a level playing
field to domestic manufacturers
?Advancement of grid parity globally and in India
on account of improvement in cost
competitiveness of solar energy vis-à-vis
conventional energy
THREATS
?Withdrawal or reduction of State support in key
markets through reduction of subsidies and
other incentives or change in government
policies
?Continuation of challenged economic
environment in Europe, a key market for solar-
PV products is likely to affect demand for solar
power in the region
?Slowdown in demand from the current growth
drivers such as China, Japan and the US
?Lack of enforcement of the Solar Purchase
Obligations in the Indian Solar market
?Delay in implementation of JNNSM or State
Solar Policies
?Delay or non-imposition of Anti Dumping
Duties on imports from select markets by the
Indian government
?Sudden increase in capacity in the global PV
market amid an improving industry
environment
?Technology obsolescence & emergence of
disruptive technologies
?Sudden increase in input costs of key raw
materials in particular Poly silicon
?Continuation or prolonging of the high interest
rate scenario in the domestic market
?Steep fall in the module prices in the uncertain
market conditions.
HUMAN RESOURCES & INDUSTRIAL RELATIONS
The recent times have been witness to major challenges,
both at the Global and domestic levels. Industries across
sectors are fighting “recession” to stay afloat. Re-aligning
the focus of company strategy during such periods of
turbulence involved enormous efforts on the part of HR.
The role of HR in Moser Baer became vitally important in
implementing sound business strategies to secure the
business and drive the organization’s competitive edge.
Ongoing financial constraints lead to the imperative need
to optimize costs while maintaining employee morale and
commitment.
Regardless of challenges all around on various fronts, we
kept Moser Baer philosophy of investing in our people as
10 11
Helios Photo Voltaic Limited (formerly known as Moser
Baer Photo Voltaic Limited),one of the subsidiaries of the
Company had also executed the MRA/ other definitive
documents with all lender banks on January 18, 2013 and
had also fulfilled pre-required conditions for
implementation of the CDR scheme. Accordingly the
CDR scheme was accounted for in the books of the
accounts of MBPV for the year ended March 31, 2013 and
Scheme continues to be under implementation in the
current financial year.
Further Moser Baer Solar Limited (MBSL), another
subsidiary has also executed the MRA/ other definitive
documents with the majority of lender banks on March
28, 2013 and compliance with certain terms and
conditions of the approved debt restructuring scheme
was ongoing. During the current financial year,
considering the signing of MRA by Union Bank of India by
way of deed of accession and Bank of Baroda agreeing to
sign the MRA for revised amount, the CDR scheme has
been accounted for in the books of the accounts of MBSL
for the financial period ended December 31, 2013.
The implementation of CDR signifies the faith reposed by
the lenders in the business viability and long term
prospects of the Company as well as of its PV
subsidiaries.
The outstanding foreign currency convertible bonds
(FCCBs) aggregating to principal value of US$88.5mn
matured for redemption on June 21, 2012, which have
since been claimed by the trustee of the bondholders.
The Company has received approval from RBI for
extension of redemption date of bonds and is in
discussions with the bondholders to re-structure the
terms of these bonds. The trustee on behalf of these
bondholders has filed a petition under section 434 of the
Companies Act, 1956 with Hon’ble High Court of Delhi,
which has since been admitted.
Erosion of Net Worth
As the accumulated losses of the company at the end of stthe financial period ended on 31 December 2013
exceeded its entire net worth, the Company will take
necessary steps to comply with the requirements as per
the applicable statutes for the time being in force.
NEW INITIATIVES IN ENERGY EFFICIENCY
As part of its overall strategy for growth, Moser Baer has
taken its first steps towards foraying into the new Energy
efficient lighting business. The LED market is forecast by
research agencies to witness strong growth over the next
few years globally as well as in India. As per YUANTA, LED
light bulb market is expected to increase at a CAGR of
over 63 % to reach USD 15 billion in 2015 from USD 3.4
billion in 2012. As per Frost & Sullivan, the LED lighting
market in India is expected to grow at a CAGR of 43.9%
from 2011-18.
The overall strategy follows a differentiated approach
covering product innovation, a comprehensive solutions
package and a distinctive market reach coupled with
strong after sales support, in order to establish a strong
presence in the market. The Company has recently
commenced in-house production of LED light bulbs and
LED tube lights. It will focus on various areas including the
OEM segment, own Brand segment & key account
business. During the period under consideration, Moser
Baer bagged a contract for regular supply of LED tube
lights to one of the very prestigious OEMs, which is
amongst the top five lighting companies in India.
Across the globe, government and regulations are
actively supporting the development and deployment of
energy efficient lightning technology. In India, the
government has recently announced steps to develop
and deploy norms that could apply to, inter-alia, LED
Lightning.
LED lighting products as compared to incandescent light
bulbs or CFL’s are more energy efficient, have five to
twenty five times longer lives and are environmentally
safer with no mercury content.
Moser Baer’s LED oriented focus is on developing
technology capabilities in Light Management, Energy
Efficient Optics, Molding and Material Sciences to create
long term sustainable competencies in the business.
Moser Baer’s LED lighting team has in-house product
development, product testing & internal qualification
capabilities, supported by world class light lab facilities.
The Company plans to establish and build its presence in
the LED market on the back of its rich technology
heritage, molding capabilities, strong brand recognition
in the Indian market and a broad distribution network.
OPPORTUNITIES AND THREATS
STORAGE MEDIA
OPPORTUNITIES
?Expected consolidation in the global market in
the near term offers opportunities to the
established players to expand their market
shares. The expected improvement in the
demand-supply balance on account of
consolidation in the global market is also likely
to result in better price realizations in the near to
medium term
?Emergence of new markets, especially in the
Non-OEM segments provides opportunities to
Moser Baer to diversify its demand base
?Continuous growth in the high-margin product
category presents opportunity to us to increase
our market share
?Strong demand for Storage Media products in
India driven by robust sales of computers.
Further, increase in demand for smart phones
with high data storage requirements augurs
well for our Solid State Media segment
?Preference of certain international OEM
customers to diversify their supplier base from
Taiwan provides growth opportunity to Moser
Baer
THREATS
?Sudden spike in prices of key input materials
could affect business’ profitability. The
company has estab l ished s t ra teg ic
relationships with key suppliers to secure
availability of key raw materials.
?Sudden emergence of disruptive technologies
and substitute products can affect demand of
company’s product offerings. Moser Baer
provides strong thrust to its R&D initiatives in
order to remain ahead on the technology curve.
?Aggravation or continuation of the global
financial crisis may adversely affect demand for
the Company’s Storage Media offerings.
?Moreover, regulatory development in
debt/capital markets adversely affecting
interest cost and debt re-structuring may
adversely affect the company’s cash-flow.
?A sharp fall in product prices could impact
business profitability. The Company has been
consistently improving its cost structure and
improving product mix towards higher value
added products. The leadership position in high
value next generation formats should further
improve these returns.
?The company’s business is predominantly
export led with revenues substantially pegged
to foreign currency exchange rate. Any sudden
foreign exchange movement can adversely
affect financial performance during the period.
Management constantly monitors exchange
movement and takes appropriate measures to
mitigate impact.
SOLAR PHOTOVOLTAIC
OPPORTUNITIES
?Improving economics of solar power globally
along with strong focus on sustainable clean
energy sources worldwide provides strong
growth opportunity for solar power
?Strong growth potential in key markets such as
US, China and Japan that have taken centre
stage as the next growth drivers in the global
solar industry
?Strong thrust on solar power in the domestic
market and preference / incentive for
domestically manufactured modules under the
JNNSM
?Expected policy support through protection
from dumped products in the shape of Anti
Dumping Duties would provide a level playing
field to domestic manufacturers
?Advancement of grid parity globally and in India
on account of improvement in cost
competitiveness of solar energy vis-à-vis
conventional energy
THREATS
?Withdrawal or reduction of State support in key
markets through reduction of subsidies and
other incentives or change in government
policies
?Continuation of challenged economic
environment in Europe, a key market for solar-
PV products is likely to affect demand for solar
power in the region
?Slowdown in demand from the current growth
drivers such as China, Japan and the US
?Lack of enforcement of the Solar Purchase
Obligations in the Indian Solar market
?Delay in implementation of JNNSM or State
Solar Policies
?Delay or non-imposition of Anti Dumping
Duties on imports from select markets by the
Indian government
?Sudden increase in capacity in the global PV
market amid an improving industry
environment
?Technology obsolescence & emergence of
disruptive technologies
?Sudden increase in input costs of key raw
materials in particular Poly silicon
?Continuation or prolonging of the high interest
rate scenario in the domestic market
?Steep fall in the module prices in the uncertain
market conditions.
HUMAN RESOURCES & INDUSTRIAL RELATIONS
The recent times have been witness to major challenges,
both at the Global and domestic levels. Industries across
sectors are fighting “recession” to stay afloat. Re-aligning
the focus of company strategy during such periods of
turbulence involved enormous efforts on the part of HR.
The role of HR in Moser Baer became vitally important in
implementing sound business strategies to secure the
business and drive the organization’s competitive edge.
Ongoing financial constraints lead to the imperative need
to optimize costs while maintaining employee morale and
commitment.
Regardless of challenges all around on various fronts, we
kept Moser Baer philosophy of investing in our people as
12 13
a priority and continued with our efforts to provide an
enabling environment to our people and focus on their
development.
Employees are typically aware of the uncertainties and
ambiguities that arise due to Global Business challenges.
However, efficient communication measures and well-
constructed HR strategy for driving employee
commitment when anxieties are high, helped us to
overcome challenges from time-to-time.
Our continued focus on proactive involvement,
employee-friendly practices and policies, two way
communications & grievance redressal mechanism, and
interface with families of employees helped us to
enhance engagement level of our employees and build
strong bonding with the organisation. Voluntary
participation of employees in activities like family visits,
sports & recreation, health related initiatives – blood
donation camps, CSR activities etc. enabled us to make
maximum use for fun aspect of work-life, which in turn, is
very important for efficient & productive working.
Initiatives like cost reduction & system improvement
programs like Kaizen, 5S, TPM provide opportunities for
exchanges on the various aspects related to employee &
organizational development.
We continued to encourage Associates Involvement in
decision making process through various committees’
like the Cafeteria Committee, Transport Committee, and
Sports Committee etc. At the same time, Employee
Communicat ion Forums l ike Open Houses,
Communication Meetings, Town-Halls, HR Help Desk,
Grievance Resolution System provide all possible
opportunities for employees to express and exchange
views on the various issues that impact them.
Despite the financial constraints during the period, we
drove our Training capabilities towards development of
people in alignment with our business needs and
imperatives, and accordingly, drove development
initiatives across the organization, imparting 1.6 Man
days of Training per associate for the period.
The Industrial Relations environment at the
manufacturing locations was largely peaceful & cordial.
Issues raised were amicably & peacefully resolved
through the process of discussion and dialogue without
loss of productivity &trust.
To drive meritocracy, excellence & model behavior at the
workplace, we stretched our Reward & Recognition
framework and involved associates in activities like OTS,
Employee of Month etc thereby ensuring effective,
efficient & productive working.
Through all these activities & interventions, the Human
Resource function continued to play a pivotal role in
improving the competitive edge of the business.
Moser Baer concluded the period ending Dec 2013 with
3793 employees as compared to 4381 employees at the
end of last financial year.
INTERNAL CONTROLS AND ITS ADEQUACY
The Company has in place adequate systems of internal
control commensurate with its size and the nature of its
operations. These have been designed to provide
reasonable assurance with regard to maintaining of
proper accounting controls, recording and providing
reliable financial and operational information, complying
with applicable statutes, safeguarding assets from
unauthorized use or loss, executing transactions with
proper authorization and ensuring compliance of
corporate policies.
The internal audit process is designed to review the
adequacy of internal control checks in the system and
covers all significant areas of the company’s operations.
Risk based audits are performed, based on an annual
internal audit plan, which is developed in consultation
with the Statutory auditors and Audit Committee. The
Audit Committee reviews audit reports submitted by the
internal auditors on a quarterly basis and follows up on
the implementation of corrective actions periodically.
RISK MANAGEMENT
The Company believes that risk is an integral part of every
business and promotes a culture of building ability to
anticipate and manage the risks effectively and
converting them into opportunities. The Company’s risk
management practices ensure that the Company accepts
risks within defined parameters for which it is adequately
compensated. The Company takes a very structured
approach to the identification, quantification,
prioritization, mitigation, monitoring and reporting of
each such risk.
Key business risks and mitigants are:
?Technology risk: Company operates in an ever
evolving and dynamic technology environment
and it is of utmost importance that the
Company continuously reviews and upgrades
its technology, resources and processes lest it
faces technology obsolescence. To this effect,
Company has built a position as the leading
manufacturer and technology owner through
strong in-house R&D capabilities, successful
collaboration with key technology providers
and leading OEMs for transfer and absorption
of technological capability, while regularly
tracking and reviewing its technology road
map. The Company’s R&D efforts have
continued to be geared towards improving
existing processes to advance the Company’s
cost competitive position.
?Business concentration risk: We strive to
diversify our customer and geographic base to
avo id dependence on a pa r t i cu l a r
geography/set of customers. Continuous
actions taken by Company in this direction are
increasing sales to non-OEMs and domestic
market, initiation of direct marketing efforts to
ensure coverage of new geographies and
customers, developing leading retail private
label players and support brands to de-risk
dependence on few customers or any
particular geography.
?Input cost and falling sale price risk: Prices of
key input items used in manufacturing of
storage media products remained soft. The
ongoing realignment in the global Optical
Media industry affected the demand and ASPs
for all players. Given the need to transition in
the Optical Media industry, our focus continued
to be on rationalization of operating costs in
manufacturing and consolidation of operations
at a single location to generate cost
efficiencies. We anticipate future growth in the
business to be driven by increase in sales of
Solid State Media segment. We are now
focusing on growing the solid state media
business and development of LED lighting
business. Your Company will continue to focus
on cost re-engineering, alternate sourcing,
alternate material usage initiatives and
diversifying means of energy sourcing to
minimize the impact of input cost increase.
Higher share of value added products should
lower the impact of price fluctuation in finished
goods.
?Exchange fluctuation risk: Our operations are
subject to risk arising from fluctuations in
exchange rates with reference to countries in
which we operate. We import raw materials,
components and capital equipment and sell our
finished goods in various countries. Moreover,
we have outstanding foreign currency
denominated debt and hence we are sensitive
to fluctuations in foreign currency exchange
rates. These transactions are denominated in
foreign currencies, primarily the U.S. Dollar and
Euro. Volatility in the currency markets can
adversely affect the outcome of commercial
transactions. The treasury department of the
Company continually tracks the foreign
exchange movements and underlying currency
exposures on real time basis and takes advice
from financial experts to decide its hedging
strategy from time to time in accordance with
approved foreign exchange risk management
policy. Your Company suitably hedges the
differential foreign exchange exposures.
?Liquidity and interest rate risk: Your Company
has faced difficult business conditions over the
past few years, including periods in which its
operations have been cash negative. Company
approached the lenders of secured debt to
restructure indebtedness pursuant to the
corporate debt restructuring mechanism (the
“CDR Mechanism”). The Company has
executed the Master Restructuring Agreement
(MRA) and other definitive documents with
lender banks. The outstanding Foreign
Currency Convertible Bonds (FCCBs) matured
for redemption on June 21, 2012. The Company
is in discussions with the bondholders to re-
structure these bonds. The company continued
to face short term liquidity challenges affecting
the income generated. Continuous operating
losses during the period of revival have led to
erosion of our reserves. The company
continues to be in discussions with lenders to
address the issues and ramp up operations.
?Employee Related Risks: We strive to align our
business interests with the interests of our
workforce and focus on various employee
engagement & development initiatives to retain
and motivate our workforce.
OPERATING PERFORMANCE REVIEW
Financial Analysis
Revenue
The revenues from operations for the period April to
December 2013 decreased by 14.1% over the previous
year to INR 9444 million. Loss after tax for the period is
INR 4467 million as against INR 4592 million in the
previous fiscal year. EBITDA (including other income and
after exceptional items) decreased to INR 706 million (for
nine months) from INR 775 million in the previous
financial year (twelve months).
Fully diluted earnings per share for the period April to
December 2013 was INR (24.07) against INR (27.28) in the
previous fiscal year. The company generated INR 315
million cash from operations for the period April to
December 2013.
Capital Structure
stThe paid up equity capital was INR 1,683 million as on 31
March, 2013. During the period under review equity
capital of INR 300 million was allotted to promoters on
preferential allotment basis as per CDR restructuring and
approval of shareholders and it increased to INR 1,983 stmillion as on 31 December, 2013. Further, it increased to
thINR 2,083 million on 28 February, 2014 on preferential
allotment to promoter as aforesaid.
Reserves
The Company’s reserves stood at INR (3436) million at the
end of Dec 2013 against INR 1807 million in previous
fiscal year. There are no re-valuation reserves as of
December 31, 2013.
Loans
Over the years, the Company has part funded its ongoing
expansions and investment programs through loans
12 13
a priority and continued with our efforts to provide an
enabling environment to our people and focus on their
development.
Employees are typically aware of the uncertainties and
ambiguities that arise due to Global Business challenges.
However, efficient communication measures and well-
constructed HR strategy for driving employee
commitment when anxieties are high, helped us to
overcome challenges from time-to-time.
Our continued focus on proactive involvement,
employee-friendly practices and policies, two way
communications & grievance redressal mechanism, and
interface with families of employees helped us to
enhance engagement level of our employees and build
strong bonding with the organisation. Voluntary
participation of employees in activities like family visits,
sports & recreation, health related initiatives – blood
donation camps, CSR activities etc. enabled us to make
maximum use for fun aspect of work-life, which in turn, is
very important for efficient & productive working.
Initiatives like cost reduction & system improvement
programs like Kaizen, 5S, TPM provide opportunities for
exchanges on the various aspects related to employee &
organizational development.
We continued to encourage Associates Involvement in
decision making process through various committees’
like the Cafeteria Committee, Transport Committee, and
Sports Committee etc. At the same time, Employee
Communicat ion Forums l ike Open Houses,
Communication Meetings, Town-Halls, HR Help Desk,
Grievance Resolution System provide all possible
opportunities for employees to express and exchange
views on the various issues that impact them.
Despite the financial constraints during the period, we
drove our Training capabilities towards development of
people in alignment with our business needs and
imperatives, and accordingly, drove development
initiatives across the organization, imparting 1.6 Man
days of Training per associate for the period.
The Industrial Relations environment at the
manufacturing locations was largely peaceful & cordial.
Issues raised were amicably & peacefully resolved
through the process of discussion and dialogue without
loss of productivity &trust.
To drive meritocracy, excellence & model behavior at the
workplace, we stretched our Reward & Recognition
framework and involved associates in activities like OTS,
Employee of Month etc thereby ensuring effective,
efficient & productive working.
Through all these activities & interventions, the Human
Resource function continued to play a pivotal role in
improving the competitive edge of the business.
Moser Baer concluded the period ending Dec 2013 with
3793 employees as compared to 4381 employees at the
end of last financial year.
INTERNAL CONTROLS AND ITS ADEQUACY
The Company has in place adequate systems of internal
control commensurate with its size and the nature of its
operations. These have been designed to provide
reasonable assurance with regard to maintaining of
proper accounting controls, recording and providing
reliable financial and operational information, complying
with applicable statutes, safeguarding assets from
unauthorized use or loss, executing transactions with
proper authorization and ensuring compliance of
corporate policies.
The internal audit process is designed to review the
adequacy of internal control checks in the system and
covers all significant areas of the company’s operations.
Risk based audits are performed, based on an annual
internal audit plan, which is developed in consultation
with the Statutory auditors and Audit Committee. The
Audit Committee reviews audit reports submitted by the
internal auditors on a quarterly basis and follows up on
the implementation of corrective actions periodically.
RISK MANAGEMENT
The Company believes that risk is an integral part of every
business and promotes a culture of building ability to
anticipate and manage the risks effectively and
converting them into opportunities. The Company’s risk
management practices ensure that the Company accepts
risks within defined parameters for which it is adequately
compensated. The Company takes a very structured
approach to the identification, quantification,
prioritization, mitigation, monitoring and reporting of
each such risk.
Key business risks and mitigants are:
?Technology risk: Company operates in an ever
evolving and dynamic technology environment
and it is of utmost importance that the
Company continuously reviews and upgrades
its technology, resources and processes lest it
faces technology obsolescence. To this effect,
Company has built a position as the leading
manufacturer and technology owner through
strong in-house R&D capabilities, successful
collaboration with key technology providers
and leading OEMs for transfer and absorption
of technological capability, while regularly
tracking and reviewing its technology road
map. The Company’s R&D efforts have
continued to be geared towards improving
existing processes to advance the Company’s
cost competitive position.
?Business concentration risk: We strive to
diversify our customer and geographic base to
avo id dependence on a pa r t i cu l a r
geography/set of customers. Continuous
actions taken by Company in this direction are
increasing sales to non-OEMs and domestic
market, initiation of direct marketing efforts to
ensure coverage of new geographies and
customers, developing leading retail private
label players and support brands to de-risk
dependence on few customers or any
particular geography.
?Input cost and falling sale price risk: Prices of
key input items used in manufacturing of
storage media products remained soft. The
ongoing realignment in the global Optical
Media industry affected the demand and ASPs
for all players. Given the need to transition in
the Optical Media industry, our focus continued
to be on rationalization of operating costs in
manufacturing and consolidation of operations
at a single location to generate cost
efficiencies. We anticipate future growth in the
business to be driven by increase in sales of
Solid State Media segment. We are now
focusing on growing the solid state media
business and development of LED lighting
business. Your Company will continue to focus
on cost re-engineering, alternate sourcing,
alternate material usage initiatives and
diversifying means of energy sourcing to
minimize the impact of input cost increase.
Higher share of value added products should
lower the impact of price fluctuation in finished
goods.
?Exchange fluctuation risk: Our operations are
subject to risk arising from fluctuations in
exchange rates with reference to countries in
which we operate. We import raw materials,
components and capital equipment and sell our
finished goods in various countries. Moreover,
we have outstanding foreign currency
denominated debt and hence we are sensitive
to fluctuations in foreign currency exchange
rates. These transactions are denominated in
foreign currencies, primarily the U.S. Dollar and
Euro. Volatility in the currency markets can
adversely affect the outcome of commercial
transactions. The treasury department of the
Company continually tracks the foreign
exchange movements and underlying currency
exposures on real time basis and takes advice
from financial experts to decide its hedging
strategy from time to time in accordance with
approved foreign exchange risk management
policy. Your Company suitably hedges the
differential foreign exchange exposures.
?Liquidity and interest rate risk: Your Company
has faced difficult business conditions over the
past few years, including periods in which its
operations have been cash negative. Company
approached the lenders of secured debt to
restructure indebtedness pursuant to the
corporate debt restructuring mechanism (the
“CDR Mechanism”). The Company has
executed the Master Restructuring Agreement
(MRA) and other definitive documents with
lender banks. The outstanding Foreign
Currency Convertible Bonds (FCCBs) matured
for redemption on June 21, 2012. The Company
is in discussions with the bondholders to re-
structure these bonds. The company continued
to face short term liquidity challenges affecting
the income generated. Continuous operating
losses during the period of revival have led to
erosion of our reserves. The company
continues to be in discussions with lenders to
address the issues and ramp up operations.
?Employee Related Risks: We strive to align our
business interests with the interests of our
workforce and focus on various employee
engagement & development initiatives to retain
and motivate our workforce.
OPERATING PERFORMANCE REVIEW
Financial Analysis
Revenue
The revenues from operations for the period April to
December 2013 decreased by 14.1% over the previous
year to INR 9444 million. Loss after tax for the period is
INR 4467 million as against INR 4592 million in the
previous fiscal year. EBITDA (including other income and
after exceptional items) decreased to INR 706 million (for
nine months) from INR 775 million in the previous
financial year (twelve months).
Fully diluted earnings per share for the period April to
December 2013 was INR (24.07) against INR (27.28) in the
previous fiscal year. The company generated INR 315
million cash from operations for the period April to
December 2013.
Capital Structure
stThe paid up equity capital was INR 1,683 million as on 31
March, 2013. During the period under review equity
capital of INR 300 million was allotted to promoters on
preferential allotment basis as per CDR restructuring and
approval of shareholders and it increased to INR 1,983 stmillion as on 31 December, 2013. Further, it increased to
thINR 2,083 million on 28 February, 2014 on preferential
allotment to promoter as aforesaid.
Reserves
The Company’s reserves stood at INR (3436) million at the
end of Dec 2013 against INR 1807 million in previous
fiscal year. There are no re-valuation reserves as of
December 31, 2013.
Loans
Over the years, the Company has part funded its ongoing
expansions and investment programs through loans
14 15
CORPORATE SOCIAL RESPONSIBILITY
MBIL’s Corporate Social Responsibility is implemented
by the Moser Baer Trust (MBT). Since it came into
existence in July 2005, the Trust has been at the forefront
of addressing challenges of contiguous communities.
The Trust is committed to achieve the Country
Development Goals as well as the Millennium
Development Goals (MDGs) wherever it operates.
This year Moser Baer Trust has been able to achieve an
organic growth in its operations and has been involved in
designing and implementing need-based programs with
funding both from internal and external sources. The
Trust has been largely focusing its energies and
resources on core developmental issues like Education,
Youth development, Health and Livelihoods for the
targeted population. These programs are low on cost but
highly effective. We have also forged partnerships with
more like minded organisations to strengthen the
sustainability of our programs.
EDUCATION
Taleem: Taleem is holistic education program addressing
issues like lack of quality mainstream primary and
secondary education, lack of participation of concerned
stakeholders in the development of the child. This is done
by providing appropriate services in the community,
advocacy strategies and capacity enhancement of
multiple stakeholders. Through the programme, the Trust
is able to work with the parents through Parent Teacher
Associations to enhance their perspective on importance
of education. In 2013-14, MBT reached out to 151-out-of
school children by initiating four new Non Formal
Education centers in four villages of Gautam Budh Nagar
District in Uttar Pradesh. Apart from this, the Taleem
Program has also been able to mainstream almost 250
students from nearby communities by facilitating their
admission to Govt. schools in the vicinity.
Digital Literacy Program (DLP): Computers applications
have opened new vistas for employment and offer a wide
knowledge base that ensures brighter career prospects.
For the rural youth, especially those living in urban
peripheries, lack of IT knowledge is the biggest challenge
in achieving gainful employment. Moser Baer Trust is
aiming to address this gap by providing essential
computer training to students in their formative years and
also to the youth.
Advanced computer programming and personality
grooming sessions for the students are some of the
major value additions which we have added to this
program. Over the years the Trust has partnered with
organizations such as NASSCOM Foundation and
Microsoft India for greater access to quality educational
services for disadvantaged communities as part of our
affirmative strategy towards the disadvantaged.
During the period April- Dec 2013, it has been able to cater
to 784 students (492 Male & 292 Female), of which, 766
students completed basic computer course and 16 & 2
students were trained in Tally & DTP respectively.
Converging Opportunities for k(N)owledge &
(E)nrichment through Enhanced Communication &
Technology (CONNECT): The financial period till
December also saw the launch of project CONNECT in
partnership with NASSCOM Foundation and as a part of
Bill and Melinda Gates Foundation’s (BMGF) Global
Libraries Project. The BMGF Public Libraries
Development Program focuses on enhancing the
relationship users have with libraries – a vital resource for
empowerment. The program envisages a change in the
role played by libraries in the lives of the contiguous
population by providing latest technology and essential
access to information for communities across the world.
This project was launched in the Ghaziabad District
Library, situated at Nandgram, Ghaziabad. The library has
a collection of about 18000 books ranging from literature,
biographies, competitive exam books, magazines etc.
The library has about 507 registered members and usually
has a footfall of about 40 people per day on an average
including the students preparing for competitive exams,
senior citizens, school students and home makers.
The project looks at enhancing these numbers by
increasing footfalls across stakeholder groups. As an
implementation partner, we are looking at creating
models of public libraries that are scalable and aligned to
the changing perceptions, needs and demands of the
communities it operates in. Apart from providing free
public access to libraries, free access to internet and
identification and deployment of ICT based services will
be an integral part of the transformation of the library
space.
Youth Empowerment
yUDAI: yUDAI is MBT’s comprehensive training and
mentoring programme for overall development of youth
as responsible citizens of the country. It is an advanced
and comprehensive approach towards MBT’s Nayee
Roshni initiative (2009- 2012).
The aim of MBT is to equip adolescents with the skills to
deal effectively with the demands and challenges of daily
life. This program aims to do this by assisting them in
exploring and subsequently developing mutually
empowering relationships with parents, friends,
significant others and the community.
The program is being implemented by first identifying,
training, mentoring and strengthening a group of Peer
Leaders in each of the localities where the program is
being operationalised. The peer leaders will be mentored
for a period of 2 years and will also be prepared to support
the subsequent facilitation processes in basic youth
development trainings for at least 2 batches.
Moser Baer Trust under Project yUDAI is working with 140
youngsters in Sector 8,9,10 and 66 of the industrial city of
Noida in Uttar Pradesh. DS Group Industries has
partnered with MBT for implementation of this project in
NOIDA and with 100 youngsters in Greater NOIDA.
raised aggressively at lower costs. The company’s net
total debt increased by 3.7% over the previous year.
Financial objectives, initiatives and achievements
Your company is taking proactive measures to ensure all
financial costs are effectively reduced to positively
impact the bottom line. The Company continued to focus
on efficient working capital management to release cash
in to the system, generating INR 315 million of cash from
operations. Foreign Exchange has been particularly
volatile in the period, and the ongoing foreign exchange
risk management policy has been further strengthened to
assure that there is no adverse impact of volatile
exchange rates beyond agreed upon tolerance levels.
Interest
The amount on account of interest and finance charges
for the period April to Dec 2013 reduced to INR 1575
million as against INR 1967 million in the previous fiscal
year for twelve months.
Capital Expenditure
Gross block of the Company remained stable at INR
45,319 million.
Depreciation
Depreciation decreased significantly by 29.1% on
annualized basis in the period April to December 2013
from INR 2,902 million to INR 1,543 million. Due to the
flexible nature of the asset base and the relatively long
life-cycle of the products in the industry, we believe that
the risk of the asset base becoming obsolete is low.
Loans and advances
For the period April to Dec 2013, both long term and short
term, decreased to INR 1,742 million against INR 2,148
million in the previous fiscal year.
Capital employed
The capital employed stood at INR 10,373 million as
compared to INR 16,601 million in FY 13.
Management of surplus funds
Short term surpluses were invested mainly in bank
deposits or low risk financial instruments that optimized
return and protected the invested principal.
14 15
CORPORATE SOCIAL RESPONSIBILITY
MBIL’s Corporate Social Responsibility is implemented
by the Moser Baer Trust (MBT). Since it came into
existence in July 2005, the Trust has been at the forefront
of addressing challenges of contiguous communities.
The Trust is committed to achieve the Country
Development Goals as well as the Millennium
Development Goals (MDGs) wherever it operates.
This year Moser Baer Trust has been able to achieve an
organic growth in its operations and has been involved in
designing and implementing need-based programs with
funding both from internal and external sources. The
Trust has been largely focusing its energies and
resources on core developmental issues like Education,
Youth development, Health and Livelihoods for the
targeted population. These programs are low on cost but
highly effective. We have also forged partnerships with
more like minded organisations to strengthen the
sustainability of our programs.
EDUCATION
Taleem: Taleem is holistic education program addressing
issues like lack of quality mainstream primary and
secondary education, lack of participation of concerned
stakeholders in the development of the child. This is done
by providing appropriate services in the community,
advocacy strategies and capacity enhancement of
multiple stakeholders. Through the programme, the Trust
is able to work with the parents through Parent Teacher
Associations to enhance their perspective on importance
of education. In 2013-14, MBT reached out to 151-out-of
school children by initiating four new Non Formal
Education centers in four villages of Gautam Budh Nagar
District in Uttar Pradesh. Apart from this, the Taleem
Program has also been able to mainstream almost 250
students from nearby communities by facilitating their
admission to Govt. schools in the vicinity.
Digital Literacy Program (DLP): Computers applications
have opened new vistas for employment and offer a wide
knowledge base that ensures brighter career prospects.
For the rural youth, especially those living in urban
peripheries, lack of IT knowledge is the biggest challenge
in achieving gainful employment. Moser Baer Trust is
aiming to address this gap by providing essential
computer training to students in their formative years and
also to the youth.
Advanced computer programming and personality
grooming sessions for the students are some of the
major value additions which we have added to this
program. Over the years the Trust has partnered with
organizations such as NASSCOM Foundation and
Microsoft India for greater access to quality educational
services for disadvantaged communities as part of our
affirmative strategy towards the disadvantaged.
During the period April- Dec 2013, it has been able to cater
to 784 students (492 Male & 292 Female), of which, 766
students completed basic computer course and 16 & 2
students were trained in Tally & DTP respectively.
Converging Opportunities for k(N)owledge &
(E)nrichment through Enhanced Communication &
Technology (CONNECT): The financial period till
December also saw the launch of project CONNECT in
partnership with NASSCOM Foundation and as a part of
Bill and Melinda Gates Foundation’s (BMGF) Global
Libraries Project. The BMGF Public Libraries
Development Program focuses on enhancing the
relationship users have with libraries – a vital resource for
empowerment. The program envisages a change in the
role played by libraries in the lives of the contiguous
population by providing latest technology and essential
access to information for communities across the world.
This project was launched in the Ghaziabad District
Library, situated at Nandgram, Ghaziabad. The library has
a collection of about 18000 books ranging from literature,
biographies, competitive exam books, magazines etc.
The library has about 507 registered members and usually
has a footfall of about 40 people per day on an average
including the students preparing for competitive exams,
senior citizens, school students and home makers.
The project looks at enhancing these numbers by
increasing footfalls across stakeholder groups. As an
implementation partner, we are looking at creating
models of public libraries that are scalable and aligned to
the changing perceptions, needs and demands of the
communities it operates in. Apart from providing free
public access to libraries, free access to internet and
identification and deployment of ICT based services will
be an integral part of the transformation of the library
space.
Youth Empowerment
yUDAI: yUDAI is MBT’s comprehensive training and
mentoring programme for overall development of youth
as responsible citizens of the country. It is an advanced
and comprehensive approach towards MBT’s Nayee
Roshni initiative (2009- 2012).
The aim of MBT is to equip adolescents with the skills to
deal effectively with the demands and challenges of daily
life. This program aims to do this by assisting them in
exploring and subsequently developing mutually
empowering relationships with parents, friends,
significant others and the community.
The program is being implemented by first identifying,
training, mentoring and strengthening a group of Peer
Leaders in each of the localities where the program is
being operationalised. The peer leaders will be mentored
for a period of 2 years and will also be prepared to support
the subsequent facilitation processes in basic youth
development trainings for at least 2 batches.
Moser Baer Trust under Project yUDAI is working with 140
youngsters in Sector 8,9,10 and 66 of the industrial city of
Noida in Uttar Pradesh. DS Group Industries has
partnered with MBT for implementation of this project in
NOIDA and with 100 youngsters in Greater NOIDA.
raised aggressively at lower costs. The company’s net
total debt increased by 3.7% over the previous year.
Financial objectives, initiatives and achievements
Your company is taking proactive measures to ensure all
financial costs are effectively reduced to positively
impact the bottom line. The Company continued to focus
on efficient working capital management to release cash
in to the system, generating INR 315 million of cash from
operations. Foreign Exchange has been particularly
volatile in the period, and the ongoing foreign exchange
risk management policy has been further strengthened to
assure that there is no adverse impact of volatile
exchange rates beyond agreed upon tolerance levels.
Interest
The amount on account of interest and finance charges
for the period April to Dec 2013 reduced to INR 1575
million as against INR 1967 million in the previous fiscal
year for twelve months.
Capital Expenditure
Gross block of the Company remained stable at INR
45,319 million.
Depreciation
Depreciation decreased significantly by 29.1% on
annualized basis in the period April to December 2013
from INR 2,902 million to INR 1,543 million. Due to the
flexible nature of the asset base and the relatively long
life-cycle of the products in the industry, we believe that
the risk of the asset base becoming obsolete is low.
Loans and advances
For the period April to Dec 2013, both long term and short
term, decreased to INR 1,742 million against INR 2,148
million in the previous fiscal year.
Capital employed
The capital employed stood at INR 10,373 million as
compared to INR 16,601 million in FY 13.
Management of surplus funds
Short term surpluses were invested mainly in bank
deposits or low risk financial instruments that optimized
return and protected the invested principal.
16 17
CSR@MBIL
Employees are one of the very important stakeholders for
an organisation. Through ICARE employees are given
opportunities round the year to bring them closer to the
communities. This is done by commemorating many
important annual calendar events together like
International Youth Day, WORLD AIDS Day to name a few.
Like the preceding years, this year too we celebrated the th thfirst week of December (29 November to 5 December)
as the CSR week. This whole week was aimed at
enhancing employee voluntarism by organizing various
drives and campaigns as well as designed interactive and
creative sessions. The CSR week is a major event and is
organized in all our business locations. The whole CSR
week culminates into the annual stakeholder meet called
SANGAM.
Employee Voluntarism
This year we also saw tremendous participation by
employees in preparing gifts and decorating them for
distribution to contiguous communities on the occasion
of Christmas. A group of 15 employees volunteered to
prepare these gifts and then deck up the Taleem centers
along with 30 children from the communities of our
operations
On the occasion of World Pollution Day a collage
competition was organized wherein the employees and
children from our communities participated together in
small mixed groups.
EHS Performance Apr-Dec’13
Moser Baer as an organization has achieved many milestones in regard to EHS (Environment, Health & Safety). Some of the achievements are mentioned below:
1. Recycling of materials, energy efficiency and renewable energy are said to be the pillars of sustainable policy. Recycling turns materials that would otherwise become waste into valuable resources. Initiatives taken during the year included the following :
i. Saving of 986 Keekar trees through in-house recycling / reusing 6275 wooden pallets for product packing.
ii. Recycled 3126.352 Tons of polycarbonate during this period
iii. Started using grid power to reduce consumption of HFO.
2. Won Annual Fast and Furious contest organized by State Fire Service Department in neighboring industries on National Fire Service Day.
3. Achieved accident rate reduction to a level of 1.79 against the previous achievement of 2.01. This accident rate is not only based on lost time accident, but includes cases of First Aid as well.
4. Covered more that 75% of entire associates in EHS Training, and achieved a Training rate (Training /man/ year) more than 5.67 against a target of 3.00 in the Annual Performance Plan.
5. Designed and developed in-house Behavioral Based Safety (BBS) Training as per Dupont sustainable Management system and covered more than 1500 associates in the workshop.
6. Re-certification done successfully without any major deviation under the Integrated Management System of ISO 9001:2008, ISO 14001:2004, OHSAS 18001:2007 and SA 8000:2008 Standards for
Environment, Health & Safety Management and Social Accountability respectively, audited by various certifying agencies like DNV & TUV Rhineland.
7. Designed ,developed and implemented 16 EHS Training modules like Lock out Tag out, defensive driving for drivers, Industrial Hygiene and personal grooming for cafeteria employees, Electrical Safety, Hazards communications, Effective use of Personal Protective Equipments, RoHS Directives, Legal aspects of Industrial Safety, Machine Guarding and Material Handling etc.
8. Sony Green Partner Certification (by JGPSSI) for product Environmental Management System from Sony Japan securing 96.5% — highest ever score for any company audited by Sony worldwide and Certification was extended up to Dec 2014.
9. Nominated as leader by District Administration for Off-Site Emergency Planning.
10. Elimination of PVC Pouches as per EEEC Directives.
11. Rain water harvesting at 16 locations and underground water level raised 3 feet and being maintained regularly.
12. Non-use of Banned Substances in product inputs.
13. EHS Kaizen Scheme launched in the entire plant to motivate employees for taking proactive approach towards EHS improvements.
14. Started benchmarking process with nearby industries to improve EHS systems.
15. Actively participated in more than 15 Emergency preparedness (Mock Drills) in neighborhood industries organized by Director of Factories and Chief Fire Officer
16. Moser Baer was nominated as member of Safety Advisory Committee by State Government and DGFASALI (Ministry of Labor).
Director's Report 18
Corporate Governance Report 30
Auditor's Report 50
Balance Sheet 56
Profit and Loss Account 57
Cash Flow Statement 58
Significant Accounting Policies and Notes on Accounts 60
Auditor's Report on Consolidated Financials 98
Consolidates Financials 100
Information Pertaining to Subsidiary Companies U/S 212(8) 152
fin
an
cia
ls
16 17
CSR@MBIL
Employees are one of the very important stakeholders for
an organisation. Through ICARE employees are given
opportunities round the year to bring them closer to the
communities. This is done by commemorating many
important annual calendar events together like
International Youth Day, WORLD AIDS Day to name a few.
Like the preceding years, this year too we celebrated the th thfirst week of December (29 November to 5 December)
as the CSR week. This whole week was aimed at
enhancing employee voluntarism by organizing various
drives and campaigns as well as designed interactive and
creative sessions. The CSR week is a major event and is
organized in all our business locations. The whole CSR
week culminates into the annual stakeholder meet called
SANGAM.
Employee Voluntarism
This year we also saw tremendous participation by
employees in preparing gifts and decorating them for
distribution to contiguous communities on the occasion
of Christmas. A group of 15 employees volunteered to
prepare these gifts and then deck up the Taleem centers
along with 30 children from the communities of our
operations
On the occasion of World Pollution Day a collage
competition was organized wherein the employees and
children from our communities participated together in
small mixed groups.
EHS Performance Apr-Dec’13
Moser Baer as an organization has achieved many milestones in regard to EHS (Environment, Health & Safety). Some of the achievements are mentioned below:
1. Recycling of materials, energy efficiency and renewable energy are said to be the pillars of sustainable policy. Recycling turns materials that would otherwise become waste into valuable resources. Initiatives taken during the year included the following :
i. Saving of 986 Keekar trees through in-house recycling / reusing 6275 wooden pallets for product packing.
ii. Recycled 3126.352 Tons of polycarbonate during this period
iii. Started using grid power to reduce consumption of HFO.
2. Won Annual Fast and Furious contest organized by State Fire Service Department in neighboring industries on National Fire Service Day.
3. Achieved accident rate reduction to a level of 1.79 against the previous achievement of 2.01. This accident rate is not only based on lost time accident, but includes cases of First Aid as well.
4. Covered more that 75% of entire associates in EHS Training, and achieved a Training rate (Training /man/ year) more than 5.67 against a target of 3.00 in the Annual Performance Plan.
5. Designed and developed in-house Behavioral Based Safety (BBS) Training as per Dupont sustainable Management system and covered more than 1500 associates in the workshop.
6. Re-certification done successfully without any major deviation under the Integrated Management System of ISO 9001:2008, ISO 14001:2004, OHSAS 18001:2007 and SA 8000:2008 Standards for
Environment, Health & Safety Management and Social Accountability respectively, audited by various certifying agencies like DNV & TUV Rhineland.
7. Designed ,developed and implemented 16 EHS Training modules like Lock out Tag out, defensive driving for drivers, Industrial Hygiene and personal grooming for cafeteria employees, Electrical Safety, Hazards communications, Effective use of Personal Protective Equipments, RoHS Directives, Legal aspects of Industrial Safety, Machine Guarding and Material Handling etc.
8. Sony Green Partner Certification (by JGPSSI) for product Environmental Management System from Sony Japan securing 96.5% — highest ever score for any company audited by Sony worldwide and Certification was extended up to Dec 2014.
9. Nominated as leader by District Administration for Off-Site Emergency Planning.
10. Elimination of PVC Pouches as per EEEC Directives.
11. Rain water harvesting at 16 locations and underground water level raised 3 feet and being maintained regularly.
12. Non-use of Banned Substances in product inputs.
13. EHS Kaizen Scheme launched in the entire plant to motivate employees for taking proactive approach towards EHS improvements.
14. Started benchmarking process with nearby industries to improve EHS systems.
15. Actively participated in more than 15 Emergency preparedness (Mock Drills) in neighborhood industries organized by Director of Factories and Chief Fire Officer
16. Moser Baer was nominated as member of Safety Advisory Committee by State Government and DGFASALI (Ministry of Labor).
Director's Report 18
Corporate Governance Report 30
Auditor's Report 50
Balance Sheet 56
Profit and Loss Account 57
Cash Flow Statement 58
Significant Accounting Policies and Notes on Accounts 60
Auditor's Report on Consolidated Financials 98
Consolidates Financials 100
Information Pertaining to Subsidiary Companies U/S 212(8) 152
fin
an
cia
ls
18 19
DIRECTORS’ REPORT
Dear Shareholders,
stYour Directors have pleasure in presenting their 31 Annual Report on the business and operations of the Company sttogether with the Audited Accounts for the financial period ended 31 December, 2013.
Financial Results
Particulars (Rupees in Million)
Period ended Year ended
December 31, 2013 March 31, 2013
(Nine months) (Twelve Months)
Gross Sales, Service Income and other Income 10,058 15,463
Profit before Depreciation, Interest and Tax but after Prior Period Items 706 775
Depreciation / Amortization 1,543 3,418
Interest and Finance Charges 1,575 1,967
Profit / (Loss) before Exceptional Items and Tax (2,412) (4,610)
Exceptional Gain / (Loss) (2,055) 18
Profit / (Loss) before Tax (4,467) (4,592)
Tax Expenses - -
Profit /(Loss) after Tax (4,467) (4,592)
Profit / (Loss) Carried Forward from Last Year - -
Profit/ (Loss) Available for Appropriation (4,467) (4,592)
Appropriations:
Dividend (Proposed) Nil Nil
Provision for Tax on Proposed Dividend Nil Nil
Transfer to General Reserve Account Nil Nil
Operations
Revenues for Financial period ended 31st December 2013, stood at INR 10058 million, profit before depreciation, interest,
exceptional items and tax stood at INR 706 million.
Market Development
Market environment and outlook
Storage Media Business
stDuring the nine month period ended 31 December 2013, demand for Optical Media products declined in the developed
markets, while the Asia Pacific, Africa, Middle East & Latin America regions continued to develop as relatively stable
demand centers. The supply rationalization in the Optical Media industry continued during the period, however, supply
demand mismatch is still not resolved. It is expected that more manufacturers will exit or curtail manufacturing capacities
in the near future.
Demand for new generation Optical Media products like Blu-ray in mature markets such as Japan, USA and Europe has
been stable. Emerging Markets on the other hand continued to show higher preference for DVDs and also witnessed
increase in demand for Blu-ray products.
The Storage Media business, which includes Solid State Media segment (Flash Drives, SD and Micro SD cards) has
witnessed growth in India and continues to witness an increase in popularity globally due to ease of use and declining per
unit costs. Demand is shifting to higher memory capacity.
Moser Baer continues to remain one of the leading players in the global Storage Media industry both in terms of low cost
mass manufacturing and in offering a wide range of high quality products. Our strong focus on quality and service has
resulted in continued business alliances with leading OEMs across the world. The company supplies products in over 95
countries globally.
As one of the select few suppliers of advanced Blu-ray formats globally, we have maintained our leadership in prominent
markets like Japan. We continue to reduce manufacturing costs of Blu-ray disc to maintain segment profitability.
Operations within our Solid State Media (SSM) segment were affected due to financial constraints during the year.
However, the demand for company’s products remains robust and we expect an upswing in the coming years. Supplies to
OEMs formed a significant part of revenue. This is a highly scalable business and presents a big opportunity to the
company in data storage.
During the period, the Company undertook several steps aimed at lowering overheads and aligning resources with current
levels of operations. After the company consolidated all its manufacturing facilities to cut down on overheads and to
extract supply chain synergies last year, the focus this year has been to ramp-up capacity utilization at Greater Noida.
Further consolidation in Greater Noida facility is being executed which will result in lower power consumption and lower
fixed overheads. The company continued to right size its employee base to the current level of operations. These steps are
expected to positively impact the company’s operations in the near to medium term.
We are aggressively pursuing new geographies like Africa and several countries in Latin America for incremental markets
and customer acquisition and expect our Non- OEM market share to increase in the coming quarters.
In the medium term, the Optical Media industry within the developed markets is expected to witness decline in demand for
the first generation products CDs/DVDs. The company’s strategy is to gain high market share to offset decline in demand.
In this regard, significant progress has been made in the European, USA & Mexican markets. DVDs demand is expected to
remain stable in the near to medium term.
In the near future, the Solid State Media segment is expected to be a key growth driver for the business on account of rapid
penetration of personal computing devices in the developing markets and robust increase in demand for smart phones
globally.
The Company continues to focus on product innovation, upholding its high quality standards, increasing its cost
competitiveness and widening of its distribution network.
Photo Voltaic Business
Growth in the global solar PV industry that remained stagnant in CY 2012, gained positive traction in CY 2013 with 36 GW of
solar PV installations witnessed during the year (up by 16% Y-o-Y). This reversal in the industry environment was primarily
driven by robust demand from China, Japan and the US.
The improvement in the global PV industry was accompanied with improvement in performance of Tier I global players
along with the exit of less competitive Tier II/Tier III players. Demand supply equilibrium in the global PV industry improved
which led to stabilization in the global PV module prices and improvement in the financial/operating performance of Tier I
solar PV manufacturers.
The Indian solar PV market, on the other hand, slowed down marginally during 2013 due to delays in implementation of the
State Solar polices. In CY 2013, 950 MW of PV installations took place in India, down from 982 MW in 2012. The
implementation of Phase II Batch I of the Jawaharlal Nehru National Solar Mission (JNNSM) was also delayed, which is
likely to have an impact on the PV market in 2014. The Indian solar market was also adversely affected by the non-
enforcement of the Solar Purchase Obligations (SPO) of obligated entities in the majority of the States in India.
In 2013, the Ministry of New and Renewable Energy announced inclusion of Domestic Content Regulations (DCR) in Phase
II Batch I of the JNNSM. As per the implementation guidelines, of the total 750 MW of targeted solar projects, 375 MW of
solar projects need to be developed using domestically manufactured cells and modules. This provides an opportunity to
domestic cell manufacturers to increase their utilization rates and participate in the implementation of Phase II of the
JNNSM.
While the DCR was introduced in Phase II Batch I of the JNNSM, the announcement of the decision on the outcome of the
Anti Dumping Investigations against the import of solar cells and modules from certain countries that was expected in the
last quarter of CY 2013, was delayed. The process is now expected to be completed by May 2014.
The struggling domestic solar manufacturing industry which is reeling under the impact of export of solar PV cells and
modules from certain markets at dumped prices needs the simultaneous protection through imposition of Anti Dumping
Duties and implementation of the Domestic Content Regulations. This is pivotal to achieve MNRE’s target to develop a
domestic manufacturing base with a capacity of 5,000 MW by 2017.
During 2013, increase in competitiveness of solar power continued to improve amidst increasing cost of conventional
energy which advanced parity of solar PV with grid electricity in several countries. As per Deutsche Bank, Solar is currently
competitive without subsidies in at least 19 markets globally and more markets are expected to reach grid parity in 2014 as
System prices decline further.
In the Indian market too, declining solar tariffs along with increasing prices of conventional energy has brought closer parity
for solar power with conventional sources of energy. As per Bridge to India, Solar PV power is close to parity with
commercial tariff paid by consumers in the States of Delhi, Maharashtra and Kerala. By 2016, over 45% of the Indian states
are expected to achieve commercial parity.
18 19
DIRECTORS’ REPORT
Dear Shareholders,
stYour Directors have pleasure in presenting their 31 Annual Report on the business and operations of the Company sttogether with the Audited Accounts for the financial period ended 31 December, 2013.
Financial Results
Particulars (Rupees in Million)
Period ended Year ended
December 31, 2013 March 31, 2013
(Nine months) (Twelve Months)
Gross Sales, Service Income and other Income 10,058 15,463
Profit before Depreciation, Interest and Tax but after Prior Period Items 706 775
Depreciation / Amortization 1,543 3,418
Interest and Finance Charges 1,575 1,967
Profit / (Loss) before Exceptional Items and Tax (2,412) (4,610)
Exceptional Gain / (Loss) (2,055) 18
Profit / (Loss) before Tax (4,467) (4,592)
Tax Expenses - -
Profit /(Loss) after Tax (4,467) (4,592)
Profit / (Loss) Carried Forward from Last Year - -
Profit/ (Loss) Available for Appropriation (4,467) (4,592)
Appropriations:
Dividend (Proposed) Nil Nil
Provision for Tax on Proposed Dividend Nil Nil
Transfer to General Reserve Account Nil Nil
Operations
Revenues for Financial period ended 31st December 2013, stood at INR 10058 million, profit before depreciation, interest,
exceptional items and tax stood at INR 706 million.
Market Development
Market environment and outlook
Storage Media Business
stDuring the nine month period ended 31 December 2013, demand for Optical Media products declined in the developed
markets, while the Asia Pacific, Africa, Middle East & Latin America regions continued to develop as relatively stable
demand centers. The supply rationalization in the Optical Media industry continued during the period, however, supply
demand mismatch is still not resolved. It is expected that more manufacturers will exit or curtail manufacturing capacities
in the near future.
Demand for new generation Optical Media products like Blu-ray in mature markets such as Japan, USA and Europe has
been stable. Emerging Markets on the other hand continued to show higher preference for DVDs and also witnessed
increase in demand for Blu-ray products.
The Storage Media business, which includes Solid State Media segment (Flash Drives, SD and Micro SD cards) has
witnessed growth in India and continues to witness an increase in popularity globally due to ease of use and declining per
unit costs. Demand is shifting to higher memory capacity.
Moser Baer continues to remain one of the leading players in the global Storage Media industry both in terms of low cost
mass manufacturing and in offering a wide range of high quality products. Our strong focus on quality and service has
resulted in continued business alliances with leading OEMs across the world. The company supplies products in over 95
countries globally.
As one of the select few suppliers of advanced Blu-ray formats globally, we have maintained our leadership in prominent
markets like Japan. We continue to reduce manufacturing costs of Blu-ray disc to maintain segment profitability.
Operations within our Solid State Media (SSM) segment were affected due to financial constraints during the year.
However, the demand for company’s products remains robust and we expect an upswing in the coming years. Supplies to
OEMs formed a significant part of revenue. This is a highly scalable business and presents a big opportunity to the
company in data storage.
During the period, the Company undertook several steps aimed at lowering overheads and aligning resources with current
levels of operations. After the company consolidated all its manufacturing facilities to cut down on overheads and to
extract supply chain synergies last year, the focus this year has been to ramp-up capacity utilization at Greater Noida.
Further consolidation in Greater Noida facility is being executed which will result in lower power consumption and lower
fixed overheads. The company continued to right size its employee base to the current level of operations. These steps are
expected to positively impact the company’s operations in the near to medium term.
We are aggressively pursuing new geographies like Africa and several countries in Latin America for incremental markets
and customer acquisition and expect our Non- OEM market share to increase in the coming quarters.
In the medium term, the Optical Media industry within the developed markets is expected to witness decline in demand for
the first generation products CDs/DVDs. The company’s strategy is to gain high market share to offset decline in demand.
In this regard, significant progress has been made in the European, USA & Mexican markets. DVDs demand is expected to
remain stable in the near to medium term.
In the near future, the Solid State Media segment is expected to be a key growth driver for the business on account of rapid
penetration of personal computing devices in the developing markets and robust increase in demand for smart phones
globally.
The Company continues to focus on product innovation, upholding its high quality standards, increasing its cost
competitiveness and widening of its distribution network.
Photo Voltaic Business
Growth in the global solar PV industry that remained stagnant in CY 2012, gained positive traction in CY 2013 with 36 GW of
solar PV installations witnessed during the year (up by 16% Y-o-Y). This reversal in the industry environment was primarily
driven by robust demand from China, Japan and the US.
The improvement in the global PV industry was accompanied with improvement in performance of Tier I global players
along with the exit of less competitive Tier II/Tier III players. Demand supply equilibrium in the global PV industry improved
which led to stabilization in the global PV module prices and improvement in the financial/operating performance of Tier I
solar PV manufacturers.
The Indian solar PV market, on the other hand, slowed down marginally during 2013 due to delays in implementation of the
State Solar polices. In CY 2013, 950 MW of PV installations took place in India, down from 982 MW in 2012. The
implementation of Phase II Batch I of the Jawaharlal Nehru National Solar Mission (JNNSM) was also delayed, which is
likely to have an impact on the PV market in 2014. The Indian solar market was also adversely affected by the non-
enforcement of the Solar Purchase Obligations (SPO) of obligated entities in the majority of the States in India.
In 2013, the Ministry of New and Renewable Energy announced inclusion of Domestic Content Regulations (DCR) in Phase
II Batch I of the JNNSM. As per the implementation guidelines, of the total 750 MW of targeted solar projects, 375 MW of
solar projects need to be developed using domestically manufactured cells and modules. This provides an opportunity to
domestic cell manufacturers to increase their utilization rates and participate in the implementation of Phase II of the
JNNSM.
While the DCR was introduced in Phase II Batch I of the JNNSM, the announcement of the decision on the outcome of the
Anti Dumping Investigations against the import of solar cells and modules from certain countries that was expected in the
last quarter of CY 2013, was delayed. The process is now expected to be completed by May 2014.
The struggling domestic solar manufacturing industry which is reeling under the impact of export of solar PV cells and
modules from certain markets at dumped prices needs the simultaneous protection through imposition of Anti Dumping
Duties and implementation of the Domestic Content Regulations. This is pivotal to achieve MNRE’s target to develop a
domestic manufacturing base with a capacity of 5,000 MW by 2017.
During 2013, increase in competitiveness of solar power continued to improve amidst increasing cost of conventional
energy which advanced parity of solar PV with grid electricity in several countries. As per Deutsche Bank, Solar is currently
competitive without subsidies in at least 19 markets globally and more markets are expected to reach grid parity in 2014 as
System prices decline further.
In the Indian market too, declining solar tariffs along with increasing prices of conventional energy has brought closer parity
for solar power with conventional sources of energy. As per Bridge to India, Solar PV power is close to parity with
commercial tariff paid by consumers in the States of Delhi, Maharashtra and Kerala. By 2016, over 45% of the Indian states
are expected to achieve commercial parity.
20 21
Moser Baer continued to maintain its position as one of the largest solar PV manufacturer in India that is present across the solar value chain. Moser Baer Solar is also the only PV company in the world to be conferred with the prestigious “5 Star Rating” by TÜV Rheinland for maintaining highest standards of quality in manufacturing for three consecutive years in a row.
We are currently running our operations at low capacity utilization levels in view of the difficult operating environment triggered by dumping of solar products in India by certain countries. We continue to align our costs with the current level of operations to improve business efficiency.
We are currently focusing on the high margin Japanese market where our products are well recognized and command a premium owing to the high quality profile of our offerings. The recent restrictions imposed by the European Union on Chinese PV exports to Europe, provides additional opportunity to us to increase our presence in that region. We also plan to ramp up our operations for the domestic market in line with emerging opportunities in the Indian market & announcement of key Government policy initiatives.
Our PV Business continues to maintain its leadership position in the Indian solar EPC market with over 260 MW of projects installed till date. The company has been able to achieve massive decline in project execution times and steep reduction in project costs on the back of its strong expertise in the EPC business. Moser Baer Solar completed commissioning of a 5MW solar project for a prestigious PSU in January 2014.
Our strong presence in the Indian solar PV market, integrated operations, high quality profile and strong brand value positions us to benefit from the high potential Indian market in both the off-grid and utility scale markets in the years to come.
The Corporate Debt Restructuring (CDR) schemes of Moser Baer’s PV subsidiaries (Moser Baer Solar Ltd. and Helios Photo Voltaic Ltd. - formerly known as Moser Baer Photo Voltaic Ltd.), aimed at optimizing the current resources and aligning the current debt obligations with the expected future cash flows, are currently under implementation. Definitive agreements have been signed for both the subsidiaries by the majority of the lenders and other implementation formalities including security perfection are currently being carried out.
The global solar PV market’s recent turnaround is expected to continue in CY 2014. During Oct 2013-Mar 2014, the solar PV industry is forecast to install almost 22 GW, with CY 2014 installation demand forecast at 49 GW (Solarbuzz). The global solar market, that took several years to reach a cumulative installed capacity of 100 GW by the end of CY 2012, is forecast to add a similar capacity during CY 2014 and CY 2015 only.
In the Indian solar PV market also, higher solar irradiation, severe shortage of electricity, political will for inclusive growth, rising prices of conventional power and increasing economics of solar power are likely to ensure strong growth of solar power in India in the medium to long term.
Share Capital
stThe Company has allotted 4,00,00,000 Equity Shares on preferential basis (3,00,00,000 Equity Shares upto 31 December, th2013 and 1,00,00,000 Equity Shares on 28 February, 2014) to Promoter pursuant to the Corporate Debt Restructuring
Scheme. These shares have been listed at National Stock Exchange of India Limited and Bombay Stock Exchange Limited.
Change in Financial Year
The Company has changed its Financial Year from 12 (Twelve) months to 9 (Nine) months i.e. April 01, 2013 to December 31, 2013 for current year, for successful implementation of the Corporate Debt Restructuring Scheme and other corrective measures.
Subsidiary Companies
As per section 212 of the Companies Act, 1956, the Company is required to attach the Directors’ Report, Balance Sheet and Statement of Profit and loss of its subsidiaries. The Ministry of Corporate Affairs, Government of India vide its circular no. 2/2011 dated February 8, 2011 has provided an exemption to companies from complying with Section 212, provided such companies publish the audited consolidated financial statements in Annual Report. Accordingly, the Annual Report for the
stfinancial period ended on 31 December 2013 does not contain the financial statements of our subsidiaries. The annual audited accounts and related information of our subsidiaries, where applicable, will be made available upon request.
The annual accounts of the subsidiary companies will also be kept for inspection by any member of the company at its Registered Office and Corporate / Head Office located at 43B, Okhla Industrial Estate, Phase III, New Delhi – 110 020. The same will also be published on our website, www.moserbaer.com.
Abridged Financial Statements
In terms of the provisions of section 219(1)(b)(iv) of the Companies Act, 1956, the Board of Directors have decided to circulate the abridged annual report containing salient features of the balance sheet and statement of profit and loss to the
stshareholders for the financial period ended on 31 December 2013. Full version of the annual report will be available on Company’s website www.moserbaer.com and will also be made available to investors upon request.
In support of the green initiative of the Ministry of Corporate Affairs, the Company has also decided to send the annual report through email to those shareholders who have registered their email id with their depository participant/Company’s registrar & share transfer agent. In case a shareholder wishes to receive a printed copy, he/she may please send a request to the company, which will send the annual report to the shareholder.
Dividend
stWith regard to the operating performance for the period ended on 31 December 2013, your directors do not recommended any dividend for the year.
Reserves
During the period, considering the operating performance of the Company, the Company has not transferred any amount in General Reserve.
Directors
Mr. Sanjay Jain was appointed as an Alternate Director to Mr. Bernhard Gallus for a brief period. He ceased to be an thAlternate Director w.e.f. 13 November, 2013 and appointed as Additional Director from that date pursuant to Section 161
of the Companies Act, 2013. His term of office shall be liable to retire by rotation. In accordance with section 160 of the Companies Act, 2013, Mr. Sanjay Jain, vacates office at the ensuing Annual General Meeting and being eligible, offer himself for re-appointment. Further, Mr. K. Ajit Kumar (Nominee Director of EXIM Bank) has been inducted in the Board of Directors w.e.f February 07, 2014, whose term of office shall not be liable to retire by rotation.
In terms of the provisions of Section 152 of the Companies Act, 2013, Mr. Deepak Puri, Mr. Bernhard Gallus and Mrs. Nita Puri, Directors retire by rotation at the ensuing Annual General Meeting and being eligible, offer themselves for re-appointment.
The details of Directors being recommended for appointment or re-appointment pursuant to Clause 49 of the Listing Agreement is contained in the accompanying Notice of the ensuing Annual General Meeting.
Auditors
Your Company’s Statutory Auditors, M/s. Walker, Chandiok& Co. LLP ( formerly Walker, Chandiok& Co. (Firm Regn. No. 001076N), Chartered Accountants, holds office until the conclusion of ensuing Annual General Meeting and, being eligible, offer themselves for re-appointment. Your Company has received a letter from them to the effect that their re-appointment, if made, will be in accordance with the provisions of Section 224(1B) of the Companies Act, 1956.
Auditors’ Report
The observations made in the Auditors’ Report are self- explanatory and therefore, do not call for any further comments. However, the company’s net worth stands further completely eroded on account of accumulated losses and the company plans to take further steps to improve its performance as also comply with regulatory requirements.
Stock Option Plan
Your Company had introduced a Stock Option Plan for its Non-Executive Directors i.e. Directors Stock Option Plan - 2005 (“DSOP-2005”) and for its employees i.e. Employees stock Option Plan-2004.
The company has further introduced Stock options plan for its employees (“ESOP – 2009”) by the resolution passed in the thmeeting of the Board of Directors on the 30 July, 2009 and subsequently, approved by the shareholders of the company in
th ththeir Annual General Meeting held on 8 day of September 2009. The plan came into force on 29 day of January 2010, being the date of first offer of ESOPs to the employees under ESOP Plan 2009.
During the period under review, the Compensation Committee of the Board of Directors has not granted any new options to employees of the Company under any of the ESOP Schemes. The particulars of options issued under the said Plan as required by SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 are appended as ‘Annexure A’ and forms part of this report.
Restructuring of Outstanding Foreign Currency Convertible Bonds (FCCB)
Your Company had issued US$ 75mn Zero Coupon Tranche A Convertible Bonds and US$ 75mn Zero Coupon Tranche B Convertible Bonds (the “Bonds”) in June 2007 with a tenure of 5 years. Since then, your Company bought back outstanding Bonds amounting to US$ 61.5mn. The conversion price of these Bonds has been significantly higher than the market price of the Equity Shares of the Company at the relevant times and the Bonds were not converted into equity shares.
The Company’s foreign currency convertible bonds (FCCBs) were due for redemption on 21 June 2012. The financial statements for the period ending December 31, 2013 reflect outstanding FCCBs at their face value of $ 88.5 mn along with premium on redemption. The Company is currently in process of restructuring the outstanding FCCBs.
20 21
Moser Baer continued to maintain its position as one of the largest solar PV manufacturer in India that is present across the solar value chain. Moser Baer Solar is also the only PV company in the world to be conferred with the prestigious “5 Star Rating” by TÜV Rheinland for maintaining highest standards of quality in manufacturing for three consecutive years in a row.
We are currently running our operations at low capacity utilization levels in view of the difficult operating environment triggered by dumping of solar products in India by certain countries. We continue to align our costs with the current level of operations to improve business efficiency.
We are currently focusing on the high margin Japanese market where our products are well recognized and command a premium owing to the high quality profile of our offerings. The recent restrictions imposed by the European Union on Chinese PV exports to Europe, provides additional opportunity to us to increase our presence in that region. We also plan to ramp up our operations for the domestic market in line with emerging opportunities in the Indian market & announcement of key Government policy initiatives.
Our PV Business continues to maintain its leadership position in the Indian solar EPC market with over 260 MW of projects installed till date. The company has been able to achieve massive decline in project execution times and steep reduction in project costs on the back of its strong expertise in the EPC business. Moser Baer Solar completed commissioning of a 5MW solar project for a prestigious PSU in January 2014.
Our strong presence in the Indian solar PV market, integrated operations, high quality profile and strong brand value positions us to benefit from the high potential Indian market in both the off-grid and utility scale markets in the years to come.
The Corporate Debt Restructuring (CDR) schemes of Moser Baer’s PV subsidiaries (Moser Baer Solar Ltd. and Helios Photo Voltaic Ltd. - formerly known as Moser Baer Photo Voltaic Ltd.), aimed at optimizing the current resources and aligning the current debt obligations with the expected future cash flows, are currently under implementation. Definitive agreements have been signed for both the subsidiaries by the majority of the lenders and other implementation formalities including security perfection are currently being carried out.
The global solar PV market’s recent turnaround is expected to continue in CY 2014. During Oct 2013-Mar 2014, the solar PV industry is forecast to install almost 22 GW, with CY 2014 installation demand forecast at 49 GW (Solarbuzz). The global solar market, that took several years to reach a cumulative installed capacity of 100 GW by the end of CY 2012, is forecast to add a similar capacity during CY 2014 and CY 2015 only.
In the Indian solar PV market also, higher solar irradiation, severe shortage of electricity, political will for inclusive growth, rising prices of conventional power and increasing economics of solar power are likely to ensure strong growth of solar power in India in the medium to long term.
Share Capital
stThe Company has allotted 4,00,00,000 Equity Shares on preferential basis (3,00,00,000 Equity Shares upto 31 December, th2013 and 1,00,00,000 Equity Shares on 28 February, 2014) to Promoter pursuant to the Corporate Debt Restructuring
Scheme. These shares have been listed at National Stock Exchange of India Limited and Bombay Stock Exchange Limited.
Change in Financial Year
The Company has changed its Financial Year from 12 (Twelve) months to 9 (Nine) months i.e. April 01, 2013 to December 31, 2013 for current year, for successful implementation of the Corporate Debt Restructuring Scheme and other corrective measures.
Subsidiary Companies
As per section 212 of the Companies Act, 1956, the Company is required to attach the Directors’ Report, Balance Sheet and Statement of Profit and loss of its subsidiaries. The Ministry of Corporate Affairs, Government of India vide its circular no. 2/2011 dated February 8, 2011 has provided an exemption to companies from complying with Section 212, provided such companies publish the audited consolidated financial statements in Annual Report. Accordingly, the Annual Report for the
stfinancial period ended on 31 December 2013 does not contain the financial statements of our subsidiaries. The annual audited accounts and related information of our subsidiaries, where applicable, will be made available upon request.
The annual accounts of the subsidiary companies will also be kept for inspection by any member of the company at its Registered Office and Corporate / Head Office located at 43B, Okhla Industrial Estate, Phase III, New Delhi – 110 020. The same will also be published on our website, www.moserbaer.com.
Abridged Financial Statements
In terms of the provisions of section 219(1)(b)(iv) of the Companies Act, 1956, the Board of Directors have decided to circulate the abridged annual report containing salient features of the balance sheet and statement of profit and loss to the
stshareholders for the financial period ended on 31 December 2013. Full version of the annual report will be available on Company’s website www.moserbaer.com and will also be made available to investors upon request.
In support of the green initiative of the Ministry of Corporate Affairs, the Company has also decided to send the annual report through email to those shareholders who have registered their email id with their depository participant/Company’s registrar & share transfer agent. In case a shareholder wishes to receive a printed copy, he/she may please send a request to the company, which will send the annual report to the shareholder.
Dividend
stWith regard to the operating performance for the period ended on 31 December 2013, your directors do not recommended any dividend for the year.
Reserves
During the period, considering the operating performance of the Company, the Company has not transferred any amount in General Reserve.
Directors
Mr. Sanjay Jain was appointed as an Alternate Director to Mr. Bernhard Gallus for a brief period. He ceased to be an thAlternate Director w.e.f. 13 November, 2013 and appointed as Additional Director from that date pursuant to Section 161
of the Companies Act, 2013. His term of office shall be liable to retire by rotation. In accordance with section 160 of the Companies Act, 2013, Mr. Sanjay Jain, vacates office at the ensuing Annual General Meeting and being eligible, offer himself for re-appointment. Further, Mr. K. Ajit Kumar (Nominee Director of EXIM Bank) has been inducted in the Board of Directors w.e.f February 07, 2014, whose term of office shall not be liable to retire by rotation.
In terms of the provisions of Section 152 of the Companies Act, 2013, Mr. Deepak Puri, Mr. Bernhard Gallus and Mrs. Nita Puri, Directors retire by rotation at the ensuing Annual General Meeting and being eligible, offer themselves for re-appointment.
The details of Directors being recommended for appointment or re-appointment pursuant to Clause 49 of the Listing Agreement is contained in the accompanying Notice of the ensuing Annual General Meeting.
Auditors
Your Company’s Statutory Auditors, M/s. Walker, Chandiok& Co. LLP ( formerly Walker, Chandiok& Co. (Firm Regn. No. 001076N), Chartered Accountants, holds office until the conclusion of ensuing Annual General Meeting and, being eligible, offer themselves for re-appointment. Your Company has received a letter from them to the effect that their re-appointment, if made, will be in accordance with the provisions of Section 224(1B) of the Companies Act, 1956.
Auditors’ Report
The observations made in the Auditors’ Report are self- explanatory and therefore, do not call for any further comments. However, the company’s net worth stands further completely eroded on account of accumulated losses and the company plans to take further steps to improve its performance as also comply with regulatory requirements.
Stock Option Plan
Your Company had introduced a Stock Option Plan for its Non-Executive Directors i.e. Directors Stock Option Plan - 2005 (“DSOP-2005”) and for its employees i.e. Employees stock Option Plan-2004.
The company has further introduced Stock options plan for its employees (“ESOP – 2009”) by the resolution passed in the thmeeting of the Board of Directors on the 30 July, 2009 and subsequently, approved by the shareholders of the company in
th ththeir Annual General Meeting held on 8 day of September 2009. The plan came into force on 29 day of January 2010, being the date of first offer of ESOPs to the employees under ESOP Plan 2009.
During the period under review, the Compensation Committee of the Board of Directors has not granted any new options to employees of the Company under any of the ESOP Schemes. The particulars of options issued under the said Plan as required by SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 are appended as ‘Annexure A’ and forms part of this report.
Restructuring of Outstanding Foreign Currency Convertible Bonds (FCCB)
Your Company had issued US$ 75mn Zero Coupon Tranche A Convertible Bonds and US$ 75mn Zero Coupon Tranche B Convertible Bonds (the “Bonds”) in June 2007 with a tenure of 5 years. Since then, your Company bought back outstanding Bonds amounting to US$ 61.5mn. The conversion price of these Bonds has been significantly higher than the market price of the Equity Shares of the Company at the relevant times and the Bonds were not converted into equity shares.
The Company’s foreign currency convertible bonds (FCCBs) were due for redemption on 21 June 2012. The financial statements for the period ending December 31, 2013 reflect outstanding FCCBs at their face value of $ 88.5 mn along with premium on redemption. The Company is currently in process of restructuring the outstanding FCCBs.
22 23
The Company has received approval from RBI for extension of redemption date of bonds and is in discussions with the
bondholders to re-structure the terms of these bonds. The trustee on behalf of certain bondholders has filed a petition
under section 434 of the Companies Act, 1956 with Hon’ble High Court of Delhi, which has since been admitted.
Debt Restructuring
The CDR scheme of company as well as of its PV companies has been approved and is under implementation. A debt of
INR 23,700 million for company, INR 8,650 million for Moser Baer Photo Voltaic Ltd. and of INR 9,560 million for Moser Baer
Solar Ltd. has been conclusively restructured, additional funds provided and interest funded.
The re-structuring of company was based on a Techno-Economic Valuation study which was conducted by an independent
third party consultant appointed by Central Bank of India (CBoI) and involved a detailed viability analysis of the industry,
competition, future cash flows and the new technology initiatives.
The Company had executed the Master Restructuring Agreement (MRA) / other definitive documents with all (except two)
lender banks on December 27, 2012 and had also fulfilled pre-requisite conditions for implementation of the CDR Scheme.
Subsequently an amended MRA was signed on March 30, 2013 in relation to UCO Bank. Accordingly, the CDR scheme was
accounted for in the books of the accounts in the financial year ended March 31, 2013and the Scheme continues to be
under implementation in the current financial period. During the period, the account with a non-acceding lender was
settled in accordance with the Scheme with the consent of other CDR lenders to facilitate security perfection. The
company has made significant progress on perfection of security and is also ensuring compliance with other CDR
conditions.
Helios Photo Voltaic Ltd. (formerly known as Moser Baer Photo Voltaic Limited), one of the subsidiaries of the Company
had also executed the MRA/ other definitive documents with all lender banks on January 18, 2013 and had also fulfilled pre-
requisite conditions for implementation of the CDR Scheme. Accordingly, the CDR scheme was been accounted for in the
books of the accounts of MBPV for the year ended March 31, 2013 and Scheme continues to be implemented in the current
financial period.
Further Moser Baer Solar Limited (MBSL), another subsidiary had also executed the MRA/ other definitive documents with
the majority of lender banks on March 28, 2013 and compliance with certain terms and conditions of the approved debt
restructuring scheme was ongoing. During the current financial period, considering the signing of MRA by Union Bank of
India by way of deed of accession and Bank of Baroda agreeing to sign the MRA for revised amount, the CDR scheme has
been accounted for in the books of accounts of MBSL for the financial period ended December 31, 2013.
The successful implementation of CDR signifies the faith reposed by the lenders in the business viability and long term
prospects of the Company as well as of its PV subsidiaries.
Particulars of employees
Particulars of employees, as required under Section 217(2A) of the Companies Act, 1956, read with the Companies
(Particulars of Employees) Rules, 1975, as amended, form part of this report. However, in pursuance of Section 219(1)(b)(iv)
of the Companies Act, 1956, this report is being sent to all shareholders of the Company, excluding the aforesaid
information and the said particulars are made available at the Registered Office of the Company. The members interested
in obtaining such particulars may write to the Company Secretary at the Registered Office of the Company.
Reconciliation of Share Capital Audit
As directed by Securities and Exchange Board of India (SEBI) Reconciliation of Share Capital Audit is being carried out at the
specified periodicity by M/s. Deloitte Haskins and Sells, the Secretarial Auditors of the Company.
Conservation of energy, research and development, technology absorption, foreign exchange earnings and outgo
The information pertaining to conservation of energy, technology absorption, foreign exchange earnings and outgo, as
required under Section 217(1)(e) of the Companies Act, 1956, read with the Companies (Disclosure of particulars in the
report of the Board of Directors) Rules, 1988 is given as per Annexure ‘B’ and forms part of the this Report.
Fixed deposits
During the period under review, your Company has not accepted any deposit under Section 58A of the Companies Act,
1956, read with Companies (Acceptance of Deposits) Rules, 1975.
Corporate governance
Moser Baer believes that “Corporate Governance” refers to the processes and structure by which the business and affairs
of the Company are directed and managed, in order to enhance long term shareholder value through enhancing corporate
performance and accountability, whilst taking into account the interests of all stakeholders.
A separate section on Corporate Governance forming a part of the Directors’ Report and the certificate from M/s. Walker
Chandiok & Co., Chartered Accountants, Statutory Auditors of the Company confirming compliance of conditions on
Corporate Governance as stipulated in Clause 49 of the Listing Agreement is included in this Annual Report. The Managing
Director and Group Chief Financial Officer of the Company have issued the necessary certificate to the Board in terms of
Clause 49(V) of Listing Agreement with Stock Exchanges for the financial period ended on December 31, 2013. However, in
terms of the provisions of Section 219(1)(b)(iv) of the Companies Act,1956, the abridged annual report has been sent to the
members of the company excluding this report.
Management Discussion and Analysis Report
Management’s Discussion and Analysis Report (MD&A) for the period under review, as stipulated under Clause 49 of the
Listing Agreement with stock exchanges in India, is presented in a separate section forming part of the Annual Report.
Listing at Stock Exchanges
The Shares of the Company continue to be listed on the Bombay Stock Exchange Limited and National Stock Exchange of
India Limited. The annual listing fees for the year 2014-2015 have been paid to the Stock Exchanges.
Directors’ Responsibility Statement
As required under Section 217(2AA) of the Companies Act, 1956 your Directors state:
a) that in the preparation of the annual accounts, the applicable accounting standards have been followed along with
proper explanation relating to material departures, if any;
b) that we have selected such accounting policies and applied them consistently and made judgments and estimates stthat are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31
December 2013 and its profit or loss for the nine month period ended on that date;
c) that we have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with
the provisions of the Act, for safeguarding the assets of the Company and for preventing and detecting fraud and
other irregularities.
d) that we have prepared the annual accounts on a going concern basis.
Conclusion
Your Company continues to maintain its leadership position in its various businesses by providing innovative differentiated
products and services to its customers.
Your Company has always focused on creating new values to increase customer and stakeholders’ delight. Your company
has outperformed the industry in a challenging year and continues to maintain its leadership position. We continue to meet
leading international quality benchmarks through our string focus on Internal Quality Management processes. This,
indeed, is how your Directors propose to drive the business endeavors, as we face the future with optimism and
confidence.
Your Directors place on record their appreciation for the over whelming co-operation and assistance received from
investors, customers, employees, business associates, bankers, vendors as well as regulatory and government
authorities.
For and on behalf of the Board of Directors
Moser Baer India Limited
Place: New Delhi Deepak PurithDate: 14 May, 2014 Chairman & Managing Director
22 23
The Company has received approval from RBI for extension of redemption date of bonds and is in discussions with the
bondholders to re-structure the terms of these bonds. The trustee on behalf of certain bondholders has filed a petition
under section 434 of the Companies Act, 1956 with Hon’ble High Court of Delhi, which has since been admitted.
Debt Restructuring
The CDR scheme of company as well as of its PV companies has been approved and is under implementation. A debt of
INR 23,700 million for company, INR 8,650 million for Moser Baer Photo Voltaic Ltd. and of INR 9,560 million for Moser Baer
Solar Ltd. has been conclusively restructured, additional funds provided and interest funded.
The re-structuring of company was based on a Techno-Economic Valuation study which was conducted by an independent
third party consultant appointed by Central Bank of India (CBoI) and involved a detailed viability analysis of the industry,
competition, future cash flows and the new technology initiatives.
The Company had executed the Master Restructuring Agreement (MRA) / other definitive documents with all (except two)
lender banks on December 27, 2012 and had also fulfilled pre-requisite conditions for implementation of the CDR Scheme.
Subsequently an amended MRA was signed on March 30, 2013 in relation to UCO Bank. Accordingly, the CDR scheme was
accounted for in the books of the accounts in the financial year ended March 31, 2013and the Scheme continues to be
under implementation in the current financial period. During the period, the account with a non-acceding lender was
settled in accordance with the Scheme with the consent of other CDR lenders to facilitate security perfection. The
company has made significant progress on perfection of security and is also ensuring compliance with other CDR
conditions.
Helios Photo Voltaic Ltd. (formerly known as Moser Baer Photo Voltaic Limited), one of the subsidiaries of the Company
had also executed the MRA/ other definitive documents with all lender banks on January 18, 2013 and had also fulfilled pre-
requisite conditions for implementation of the CDR Scheme. Accordingly, the CDR scheme was been accounted for in the
books of the accounts of MBPV for the year ended March 31, 2013 and Scheme continues to be implemented in the current
financial period.
Further Moser Baer Solar Limited (MBSL), another subsidiary had also executed the MRA/ other definitive documents with
the majority of lender banks on March 28, 2013 and compliance with certain terms and conditions of the approved debt
restructuring scheme was ongoing. During the current financial period, considering the signing of MRA by Union Bank of
India by way of deed of accession and Bank of Baroda agreeing to sign the MRA for revised amount, the CDR scheme has
been accounted for in the books of accounts of MBSL for the financial period ended December 31, 2013.
The successful implementation of CDR signifies the faith reposed by the lenders in the business viability and long term
prospects of the Company as well as of its PV subsidiaries.
Particulars of employees
Particulars of employees, as required under Section 217(2A) of the Companies Act, 1956, read with the Companies
(Particulars of Employees) Rules, 1975, as amended, form part of this report. However, in pursuance of Section 219(1)(b)(iv)
of the Companies Act, 1956, this report is being sent to all shareholders of the Company, excluding the aforesaid
information and the said particulars are made available at the Registered Office of the Company. The members interested
in obtaining such particulars may write to the Company Secretary at the Registered Office of the Company.
Reconciliation of Share Capital Audit
As directed by Securities and Exchange Board of India (SEBI) Reconciliation of Share Capital Audit is being carried out at the
specified periodicity by M/s. Deloitte Haskins and Sells, the Secretarial Auditors of the Company.
Conservation of energy, research and development, technology absorption, foreign exchange earnings and outgo
The information pertaining to conservation of energy, technology absorption, foreign exchange earnings and outgo, as
required under Section 217(1)(e) of the Companies Act, 1956, read with the Companies (Disclosure of particulars in the
report of the Board of Directors) Rules, 1988 is given as per Annexure ‘B’ and forms part of the this Report.
Fixed deposits
During the period under review, your Company has not accepted any deposit under Section 58A of the Companies Act,
1956, read with Companies (Acceptance of Deposits) Rules, 1975.
Corporate governance
Moser Baer believes that “Corporate Governance” refers to the processes and structure by which the business and affairs
of the Company are directed and managed, in order to enhance long term shareholder value through enhancing corporate
performance and accountability, whilst taking into account the interests of all stakeholders.
A separate section on Corporate Governance forming a part of the Directors’ Report and the certificate from M/s. Walker
Chandiok & Co., Chartered Accountants, Statutory Auditors of the Company confirming compliance of conditions on
Corporate Governance as stipulated in Clause 49 of the Listing Agreement is included in this Annual Report. The Managing
Director and Group Chief Financial Officer of the Company have issued the necessary certificate to the Board in terms of
Clause 49(V) of Listing Agreement with Stock Exchanges for the financial period ended on December 31, 2013. However, in
terms of the provisions of Section 219(1)(b)(iv) of the Companies Act,1956, the abridged annual report has been sent to the
members of the company excluding this report.
Management Discussion and Analysis Report
Management’s Discussion and Analysis Report (MD&A) for the period under review, as stipulated under Clause 49 of the
Listing Agreement with stock exchanges in India, is presented in a separate section forming part of the Annual Report.
Listing at Stock Exchanges
The Shares of the Company continue to be listed on the Bombay Stock Exchange Limited and National Stock Exchange of
India Limited. The annual listing fees for the year 2014-2015 have been paid to the Stock Exchanges.
Directors’ Responsibility Statement
As required under Section 217(2AA) of the Companies Act, 1956 your Directors state:
a) that in the preparation of the annual accounts, the applicable accounting standards have been followed along with
proper explanation relating to material departures, if any;
b) that we have selected such accounting policies and applied them consistently and made judgments and estimates stthat are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31
December 2013 and its profit or loss for the nine month period ended on that date;
c) that we have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with
the provisions of the Act, for safeguarding the assets of the Company and for preventing and detecting fraud and
other irregularities.
d) that we have prepared the annual accounts on a going concern basis.
Conclusion
Your Company continues to maintain its leadership position in its various businesses by providing innovative differentiated
products and services to its customers.
Your Company has always focused on creating new values to increase customer and stakeholders’ delight. Your company
has outperformed the industry in a challenging year and continues to maintain its leadership position. We continue to meet
leading international quality benchmarks through our string focus on Internal Quality Management processes. This,
indeed, is how your Directors propose to drive the business endeavors, as we face the future with optimism and
confidence.
Your Directors place on record their appreciation for the over whelming co-operation and assistance received from
investors, customers, employees, business associates, bankers, vendors as well as regulatory and government
authorities.
For and on behalf of the Board of Directors
Moser Baer India Limited
Place: New Delhi Deepak PurithDate: 14 May, 2014 Chairman & Managing Director
24 25
ANNEXURE- A
INFORMATION REGARDING EMPLOYEES STOCK OPTION PLAN, 2004 (ESOP) DIRECTORS’ STOCK stOPTION PLAN, 2005 (DSOP) AND EMPLOYEES STOCK OPTION PLAN, 2009 (ESOP) (AS ON 31
DECEMBER, 2013)*
S. No. Particulars ESOP-2004 DSOP-2005 ESOP-2009
1 Number of Stock Options granted 6,429,650 800,000 3,033,410
2 Pricing Formula (i) Normal allocation: - Rs.170 per Option or (i) Normal Allocation-Rs.125 per Option or prevailing Market Price, Market price on theprevailing Market Price, whichever is higher. date of grantwhichever is higher.
(ii) Special allocation: - (ii) Special Allocation-50% of the Options at 50% of the Options at Rs. 125 per Option or Rs. 125 per Option or prevailing Market Price, prevailing Market Price,whichever is higher whichever is higher and the balance 50% and the balance 50% of the Options at of the Options atRs. 170 per Option or Rs. 170 per Option orprevailing Market Price, prevailing Market Price,whichever is higher. whichever is higher.
3 Number of Options vested 119,650 200,000 837,395
4 Number of Options exercised 616,125 75,000 0
5 Number of shares arising as a result 616,125 75,000 0of exercise of option
6 Number of options cancelled/ 5,693,875 525,000 1,768,369lapsed
7 Variation of terms of options N.A. N.A. N.A.
8 Money realized by exercise of Rs 135,403,076 Rs 17,122,500 0options
9 Number of options in force 119,650 200,000 1,265,041
10 Employee-wise details of Options N.A N.A N.Agranted to:
(a) Senior managerial personnel;and
(b) Any other employee whoreceives a grant in any one year ofoption amounting to 5% or more ofoption granted during that year.
11 Identified employees who were NILgranted Options during any oneyear, equal to or Exceeding 1% ofthe issued capital (excludingoutstanding warrant andConversions) of the Company atthe time of grant;
12 Diluted Earnings Per Share (EPS) (Rs. 24.07)pursuant to issue of shares onexercise of option calculated inaccordance with AS 20
13 Method of calculation of employee The Company has used intrinsic value method for calculating the compensation cost employee compensation cost with respect to the stock options.
S. No. Particulars ESOP-2004 DSOP-2005 ESOP-2009
14 Difference b/w the employeecompensation cost so computed atserial number 13 above and theemployee compensation cost thatshall have been recognized if it hadused the fair value of options
15 The impact of this difference on Impact on profit- Rs. 49,861,854profits & on EPS of the Company Impact on EPS (basic)-Rs. (23.80)
Impact on EPS (Diluted) - Rs. (23.80)
16 Weighted-average exercise prices N.A. N.A. N.A.and weighted-average fair values ofoptions granted during the year
The Weighted Average of Vesting Period in respect of the Options granted to the Directors under DSOP-2005 were as follows:-
Grants Weighted Average of Vesting Periodst th1 Grant on 11 August, 2005 2.5 yearsnd th2 Grant on 12 December, 2006 2.5 yearsrd th3 Grant on 25 January, 2007 2.5 yearsth th4 Grant on 19 June, 2007 2.5 yearsth th5 Grant on 29 April, 2009 2.5 years
The Weighted Average of Vesting Period in respect of the Options granted to the employees ESOP-2004 were as follows:-
Grants Weighted Average of Vesting Periodst th1 Grant on 9 January 2004 3 yearsnd th2 Grant on 29 November 2004 2.5 yearsrd th3 Grant on 27 January 2005 2.5 yearsth th4 Grant on 24 June, 2005 2.5 yearsth th5 Grant on 17 August, 2005 2.5 yearsth th6 Grant on 27 October, 2005 2.5 yearsth th7 Grant on 24 January, 2006 2.5 yearsth th8 Grant on 26 April, 2006 2.5 yearsth th9 Grant on 7 June, 2006 2.5 years
th th10 Grant on 27 October, 2006 2.5 yearsth th11 Grant on 24 January, 2007 2.5 yearsth th12 Grant on 30 April, 2007 2.5 yearsth th13 Grant on 11 July, 2007 2.5 yearsth th14 Grant on 25 October, 2007 2.5 yearsth th15 Grant on 30 January, 2008 2.5 yearsth th16 grant on 17 April, 2008 2.5 yearsth th17 grant on 29 April, 2008 2.5 yearsth th18 grant on 30 July, 2008 2.5 yearsth nd19 grant on 22 October, 2008 2.5 yearsth rd20 grant on 23 October, 2008 2.5 yearsst th21 grant on 30 January, 2009 2.5 yearsnd th22 Grant on 28 April, 2009 2.5 yearsrd th23 Grant on 29 July, 2009 2.5 years
The Weighted Average of Vesting Period in respect of the Options granted to the employees ESOP-2009 were as follows:-
Grants Weighted Average of Vesting Periodst th1 Grant on 28 January 2010 2.15 yearsnd th2 Grant on 12 March, 2010 2.15 yearsrd th3 Grant on 12 August, 2010 2.15 yearsth th4 Grant on 29 October, 2010 2.15 yearsth th5 Grant on 09 February, 2011 2.15 years
Profit Rs. 49,861,854
24 25
ANNEXURE- A
INFORMATION REGARDING EMPLOYEES STOCK OPTION PLAN, 2004 (ESOP) DIRECTORS’ STOCK stOPTION PLAN, 2005 (DSOP) AND EMPLOYEES STOCK OPTION PLAN, 2009 (ESOP) (AS ON 31
DECEMBER, 2013)*
S. No. Particulars ESOP-2004 DSOP-2005 ESOP-2009
1 Number of Stock Options granted 6,429,650 800,000 3,033,410
2 Pricing Formula (i) Normal allocation: - Rs.170 per Option or (i) Normal Allocation-Rs.125 per Option or prevailing Market Price, Market price on theprevailing Market Price, whichever is higher. date of grantwhichever is higher.
(ii) Special allocation: - (ii) Special Allocation-50% of the Options at 50% of the Options at Rs. 125 per Option or Rs. 125 per Option or prevailing Market Price, prevailing Market Price,whichever is higher whichever is higher and the balance 50% and the balance 50% of the Options at of the Options atRs. 170 per Option or Rs. 170 per Option orprevailing Market Price, prevailing Market Price,whichever is higher. whichever is higher.
3 Number of Options vested 119,650 200,000 837,395
4 Number of Options exercised 616,125 75,000 0
5 Number of shares arising as a result 616,125 75,000 0of exercise of option
6 Number of options cancelled/ 5,693,875 525,000 1,768,369lapsed
7 Variation of terms of options N.A. N.A. N.A.
8 Money realized by exercise of Rs 135,403,076 Rs 17,122,500 0options
9 Number of options in force 119,650 200,000 1,265,041
10 Employee-wise details of Options N.A N.A N.Agranted to:
(a) Senior managerial personnel;and
(b) Any other employee whoreceives a grant in any one year ofoption amounting to 5% or more ofoption granted during that year.
11 Identified employees who were NILgranted Options during any oneyear, equal to or Exceeding 1% ofthe issued capital (excludingoutstanding warrant andConversions) of the Company atthe time of grant;
12 Diluted Earnings Per Share (EPS) (Rs. 24.07)pursuant to issue of shares onexercise of option calculated inaccordance with AS 20
13 Method of calculation of employee The Company has used intrinsic value method for calculating the compensation cost employee compensation cost with respect to the stock options.
S. No. Particulars ESOP-2004 DSOP-2005 ESOP-2009
14 Difference b/w the employeecompensation cost so computed atserial number 13 above and theemployee compensation cost thatshall have been recognized if it hadused the fair value of options
15 The impact of this difference on Impact on profit- Rs. 49,861,854profits & on EPS of the Company Impact on EPS (basic)-Rs. (23.80)
Impact on EPS (Diluted) - Rs. (23.80)
16 Weighted-average exercise prices N.A. N.A. N.A.and weighted-average fair values ofoptions granted during the year
The Weighted Average of Vesting Period in respect of the Options granted to the Directors under DSOP-2005 were as follows:-
Grants Weighted Average of Vesting Periodst th1 Grant on 11 August, 2005 2.5 yearsnd th2 Grant on 12 December, 2006 2.5 yearsrd th3 Grant on 25 January, 2007 2.5 yearsth th4 Grant on 19 June, 2007 2.5 yearsth th5 Grant on 29 April, 2009 2.5 years
The Weighted Average of Vesting Period in respect of the Options granted to the employees ESOP-2004 were as follows:-
Grants Weighted Average of Vesting Periodst th1 Grant on 9 January 2004 3 yearsnd th2 Grant on 29 November 2004 2.5 yearsrd th3 Grant on 27 January 2005 2.5 yearsth th4 Grant on 24 June, 2005 2.5 yearsth th5 Grant on 17 August, 2005 2.5 yearsth th6 Grant on 27 October, 2005 2.5 yearsth th7 Grant on 24 January, 2006 2.5 yearsth th8 Grant on 26 April, 2006 2.5 yearsth th9 Grant on 7 June, 2006 2.5 years
th th10 Grant on 27 October, 2006 2.5 yearsth th11 Grant on 24 January, 2007 2.5 yearsth th12 Grant on 30 April, 2007 2.5 yearsth th13 Grant on 11 July, 2007 2.5 yearsth th14 Grant on 25 October, 2007 2.5 yearsth th15 Grant on 30 January, 2008 2.5 yearsth th16 grant on 17 April, 2008 2.5 yearsth th17 grant on 29 April, 2008 2.5 yearsth th18 grant on 30 July, 2008 2.5 yearsth nd19 grant on 22 October, 2008 2.5 yearsth rd20 grant on 23 October, 2008 2.5 yearsst th21 grant on 30 January, 2009 2.5 yearsnd th22 Grant on 28 April, 2009 2.5 yearsrd th23 Grant on 29 July, 2009 2.5 years
The Weighted Average of Vesting Period in respect of the Options granted to the employees ESOP-2009 were as follows:-
Grants Weighted Average of Vesting Periodst th1 Grant on 28 January 2010 2.15 yearsnd th2 Grant on 12 March, 2010 2.15 yearsrd th3 Grant on 12 August, 2010 2.15 yearsth th4 Grant on 29 October, 2010 2.15 yearsth th5 Grant on 09 February, 2011 2.15 years
Profit Rs. 49,861,854
26 27
Fair value of options based on Black-Scholes’ Enhanced Model i.e. Enhanced FASB 123 Model for ESOP-2004
As- Grant Grant Grant Grant Grant Grant Grant Grant Grant Grant Grant Grant Grant Grant Grantsum Date- Date- Date- Date- Date- Date- Date- Date- Date- Date- Date- Date- Date- Date- Date-ptions: 9/1/04 29/11/04 27/1/05 24/6/05 17/8/05 27/10/05 24/1/06 26/4/06 7/6/06 27/10/06 24/1/07 30/04/07 11/07/07 25/10/07 30/01/08
(Options subse-quently can-celled
Risk- 4.21% 6.79% 6.55% 6.67% 6.74% 6.80% 6.77% 6.96% 7.37% 7.54% 7.73% 8.07% 7.52% 7.91% 7.42%free (for 6 (for 4 (for 5 (for 5 (for 5 (for 5 (for 5 (for 5 (for 4.56 (for 4.28 (for 4.28 (for 4.25 (for 4.26 (for 4.31 (for 4.28interest years, years, years, years, years, years, years, years, years, years, years, years, years, years, years,rate source- source source- source- source- source- source- source- source- source- source- source- source- source- source-
Reuters -NSE/ NSE/ NSE/ NSE/ NSE/ NSE/ NSE/ NSE/ NSE/ NSE/ NSE/ NSE/ NSE/ NSE/as on 9th Reuters Reuters Reuters Reuters Reuters Reuters Reuters Reuters Reuters Reuters Reuters Reuters Reuters ReutersJan 2004) as on as on as on as on as on as on as on as on as on as on as on as on as on as on
th th rd th th th rd th th th29th Nov 27th Jan 23rd Jun 16 Aug 27 Oct 23 Jan 25 Apr 6 June 27 Oct 23 Jan 27 April, 10 July, 24th Oct, 29 Jan,2004) 2005) 2005) 2005) 2005) 2006) 2006) 2006) 2006) 2007) 2007) 2007) 2007) 2008)
Expect- 7 yrs. 7 yrs. 7 yrs. 7 yrs. 7 yrs. 7 yrs. 7 yrs 7 yrs 7 yrs 7 yrs 7 yrs 7 yrs 7 yrs 7 yrs 7 yrsed life
Ex- 1.25 x 1.25 x 1.25 x 1.25 x 1.25 x 1.25 x 1.25 x 1.25 x 1.25 x 1.25 x 1.25 x 1.25x 1.25x 1.25x 1.25xpectedMultiple
Ex- 70.0% 70.0% 67.0% 62.03% 61.44% 60.76% 59.02% 57.30% 56.84% 54.66% 55.03% 56.14% 56.19% 59.98% 59.70%pected (based (based (based (based (based (based (based (based (based (based (based (based (based (based (basedvolatility on 5 on 5 on 5 on 5 on 5 on 5 on 5 on 5 on 5 on 5 on 5 on 5 on 5 on 5 on 5
years years years years years years years years years years years years years years yearsstock stock stock stock stock stock stock stock stock stock stock stock stock stock stockdata data data data data data data data data data data data data data datafrom from from from from from from from from from from from from from fromNSE) NSE) NSE) NSE) NSE) NSE) NSE) NSE) NSE) NSE) NSE) NSE) NSE) NSE) NSE)
Ex- 1.0% 0.85% 0.85% 0.85% 0.58% 0.58% 0.58% 0.58% 0.58% 0.46% 0.46% 0.46% 0.54% 0.54% 0.54%pected (based (based (based (based (Weight- (Weight- (Weight- (Weight- (Weight- (Weight- (Weight- (Weight- (Weight- (Weight- (Weight-Divi- on the on on on ed ed ed ed ed ed ed ed ed ed eddends dividend simple simple simple average average average average average average average average average average average
history average average average dividend dividend dividend dividend dividend dividend dividend dividend dividend dividend dividendfor past of the of the of the yield for yield for yield for yield for yield for yield for yield for yield for yield for yield for yield for3 finan- dividend dividend dividend last 3 last 3 last 3 last 3 last 3 last 3 last 3 last 3 last 3 last 3 last 3cial history history history financial financial financial financial financial financial financial financial financial financial financialyears) of past of past of past years years years years years years years years years years years
4 finan- 4 finan- 4 finan-cial cial cialyears) year) years)
Price of 342.00 224.05 213.20 209.80 234.75 214.70 196.60 229.40 201.10 238.80 315.30 342.50 491.90 301.10 221.95the un-derlyingshare inmarketat thetime ofoptiongrant (in Rs.)
Fair value of options based on Black-Scholes’ Enhanced Model i.e. Enhanced FASB 123 Model for ESOP-2004
Assumptions: Grant Date- Grant Date- Grant Date- Grant Date- Grant Date- Grant Date- Grant Date- Grant Date-17/04/2008 29/04/2008 30/07/2008 22/10/2008 23/10/2008 30/01/2009 28/04/2009 29/07/2009
Risk-free 7.93%(for 7.96 % (for 9.28%(for 7.44%(for 7.41% (for 6.17%(for 5.95%(for 6.32%(forinterest rate 4.26 years, 4.27 years, 4.57 years, 4.57 years, 5 years, 5.08 years, 4.98 years, 4.71 years,
source- NSE/ source-NSE source-NSE/ source-NSE/ source-NSE/ source-NSE/ source-NSE/ source-NSE/thReuters as as on 29 Reuters as Reuters as Reuters as Reuters as Reuters as Reuters as
nd nd th th thon 17th April Apr 2008) on 30th July on 22 on 22 on 29 on 27 April, on 28 July,2008) 2008) October October, January, 2009) 2009)
2008) 2008) 2009)
Expected life 7 yrs. 7 yrs. 7 yrs. 7 yrs. 7 yrs. 7 yrs. 7 yrs. 7 yrs.
Expected 1.25 x 1.25 x 1.25 x 1.25 x 1.25 x 1.25 x 1.25 x 1.25 xMultiple
Expected 60.79% 60.92 % 61.97% 63.41% 63.45% 57.59% 57.62% 58.71%volatility (based on 5 (based on 5 (based on 5 (based on 5 (based on 5 (based on 5 (based on 5 (based on 5
years stock years stock years stock years stock years stock years stock years stock years stockdata from data from data from data from data from data from data from data fromNSE) NSE) NSE) NSE) NSE) NSE) NSE) NSE)
Expected 0.54%(based 0.54%(based 0.44%(based 0.44%(based 0.44% 0.44% 0.44%(based 0.44%Dividends on weighted on weighted on weighted on weighted (Weighted (Weighted on weighted (Weighted
average average average of average of average average average of averagedividend dividend the dividend the dividend dividend dividend the dividend dividendhistory for history for history of history of yield for yield for history of yield forpast 3 past 3 past 3 past 3 last 3 last 3 past 3 last 3financial financial financial financial financial financial financial financialyears) years) years) years) years ) years) years) years)
Price of the 170 176.55 95.10 100.25 94.95 62.45 67.15 84.95underlyingshare inmarket at thetime of option grant (in Rs.)
Fair value of options based on Black-Scholes Enhanced Model i.e. Enhanced FASB 123 Model for DSOP-2005
Assumptions Grant Date-11/08/05 Grant Date -12/12/06 Grant Date -25/01/07 Grant Date- 19/06/07 Grant Date-29/04/2009
Risk-free interest rate 6.56%(for 5 years, 7.56% (for 4.58 years, 7.68% (for 4.58 years, 7.87% (for 4.32 years, 6.11% (for 5.68 years,source-NSE/ Reuters source-NSE/ Reuters source-NSE/ Reuters source NSE/Reuters source- NSE/Reuters
th th th th thas on 11 Aug 2005) as on 12 Dec 2006) as on 25 Jan 2007) as on 19 June, 2007) as on 29 April, 2009
Expected life 7 yrs 7 yrs 7 yrs 7 yrs 7 years
Expected Multiple 1.25 x 1.25 x 1.25 x 1.25x 1.25x
Expected volatility 61.46% (based on 54.73% (based on 55.03% (based on 56.20% (based on 57.63% (based on5 years stock data 5 years stock data 5 years stock data 5 year stock data 5 years stock datafrom NSE) from NSE) from NSE) from NSE) from NSE)
Expected dividends 0.58%(Weighted 0.46%(Weighted 0.46%(Weighted 0.54% (Weighted 0.44% (weightedaverage dividend average dividend average dividend average dividend average dividendyield for last 3 yield for last 3 yield for last 3 yield for last 3 yield for last 3financial years) financial years) financial years) financial years) financial years)
Price of the under- 228.30 242.60 319.25 425.25 65.30lying share in marketat the time of optiongrant (in Rs.)
th* Two Options granted before the record date i.e. 18 July, 2007 under the above plans entitles the holder to three Options of the Company.
Fair value of options based on Black-Scholes’ Options Pricing Formula for ESOP-2009
Assumptions:- Grant Date-28/1/10 Grant Date- Grant date- Grant date – Grant Date-(Options subsequently 12/03/10 12/08/2010 29//10/2010 08/02/2011cancelled
Risk-free interest rate 7.39%(for 5 years, 7.44% (for 5 years, 7.48% (for zero 7.72% (For zero 8.03% (For zerosource-NSE/ source-NSE/ coupon interest rate coupon interest rate coupon interest rateReuters as on Reuters as on on Government on Government on Government 27th Jan 2010) 12th March 2010) Securities derived Securities derived Securities derived
from zero coupon from zero coupon from zero couponyield curve as on yield curve as on yield curve as on
th th th11 August, 2010) 28 October, 2010) 8 February, 2011)
Expected life 7 yrs. 7 yrs. 7 years 7 years 7 years
Expected Multiple 1.25 x 1.25 x 1.25x 1.25x 1.25x
Expected volatility 71.52%(based on 72.19%(based on 58.21% (based on 58.17% (based on 58.73% (based on5 years stock data 5 years stock data 5 years stock data 5 years stock data 5 years stock datafrom NSE) from NSE) from NSE) from NSE) from NSE)
Expected Dividends 0.97%(Weighted 0.97% (Weighted 0.58% (weighted 0.58% (weighted 0.58% (weighted average dividend average dividend average of the average of the average of theyield for last 5 yield for last 5 dividend history of dividend history of dividend history of financial years) financial years) past 5 financial years) past 5 financial years) past 5 financial years)
Price of the under- 71.11 73.86 62.80 66.40 46.30lying share in market at the time of optiongrant (in Rs.)
For and on behalf of the Board of DirectorsMoser Baer India Limited
Place: New Delhi Deepak PuriDate: May 14, 2014 Chairman & Managing Director
26 27
Fair value of options based on Black-Scholes’ Enhanced Model i.e. Enhanced FASB 123 Model for ESOP-2004
As- Grant Grant Grant Grant Grant Grant Grant Grant Grant Grant Grant Grant Grant Grant Grantsum Date- Date- Date- Date- Date- Date- Date- Date- Date- Date- Date- Date- Date- Date- Date-ptions: 9/1/04 29/11/04 27/1/05 24/6/05 17/8/05 27/10/05 24/1/06 26/4/06 7/6/06 27/10/06 24/1/07 30/04/07 11/07/07 25/10/07 30/01/08
(Options subse-quently can-celled
Risk- 4.21% 6.79% 6.55% 6.67% 6.74% 6.80% 6.77% 6.96% 7.37% 7.54% 7.73% 8.07% 7.52% 7.91% 7.42%free (for 6 (for 4 (for 5 (for 5 (for 5 (for 5 (for 5 (for 5 (for 4.56 (for 4.28 (for 4.28 (for 4.25 (for 4.26 (for 4.31 (for 4.28interest years, years, years, years, years, years, years, years, years, years, years, years, years, years, years,rate source- source source- source- source- source- source- source- source- source- source- source- source- source- source-
Reuters -NSE/ NSE/ NSE/ NSE/ NSE/ NSE/ NSE/ NSE/ NSE/ NSE/ NSE/ NSE/ NSE/ NSE/as on 9th Reuters Reuters Reuters Reuters Reuters Reuters Reuters Reuters Reuters Reuters Reuters Reuters Reuters ReutersJan 2004) as on as on as on as on as on as on as on as on as on as on as on as on as on as on
th th rd th th th rd th th th29th Nov 27th Jan 23rd Jun 16 Aug 27 Oct 23 Jan 25 Apr 6 June 27 Oct 23 Jan 27 April, 10 July, 24th Oct, 29 Jan,2004) 2005) 2005) 2005) 2005) 2006) 2006) 2006) 2006) 2007) 2007) 2007) 2007) 2008)
Expect- 7 yrs. 7 yrs. 7 yrs. 7 yrs. 7 yrs. 7 yrs. 7 yrs 7 yrs 7 yrs 7 yrs 7 yrs 7 yrs 7 yrs 7 yrs 7 yrsed life
Ex- 1.25 x 1.25 x 1.25 x 1.25 x 1.25 x 1.25 x 1.25 x 1.25 x 1.25 x 1.25 x 1.25 x 1.25x 1.25x 1.25x 1.25xpectedMultiple
Ex- 70.0% 70.0% 67.0% 62.03% 61.44% 60.76% 59.02% 57.30% 56.84% 54.66% 55.03% 56.14% 56.19% 59.98% 59.70%pected (based (based (based (based (based (based (based (based (based (based (based (based (based (based (basedvolatility on 5 on 5 on 5 on 5 on 5 on 5 on 5 on 5 on 5 on 5 on 5 on 5 on 5 on 5 on 5
years years years years years years years years years years years years years years yearsstock stock stock stock stock stock stock stock stock stock stock stock stock stock stockdata data data data data data data data data data data data data data datafrom from from from from from from from from from from from from from fromNSE) NSE) NSE) NSE) NSE) NSE) NSE) NSE) NSE) NSE) NSE) NSE) NSE) NSE) NSE)
Ex- 1.0% 0.85% 0.85% 0.85% 0.58% 0.58% 0.58% 0.58% 0.58% 0.46% 0.46% 0.46% 0.54% 0.54% 0.54%pected (based (based (based (based (Weight- (Weight- (Weight- (Weight- (Weight- (Weight- (Weight- (Weight- (Weight- (Weight- (Weight-Divi- on the on on on ed ed ed ed ed ed ed ed ed ed eddends dividend simple simple simple average average average average average average average average average average average
history average average average dividend dividend dividend dividend dividend dividend dividend dividend dividend dividend dividendfor past of the of the of the yield for yield for yield for yield for yield for yield for yield for yield for yield for yield for yield for3 finan- dividend dividend dividend last 3 last 3 last 3 last 3 last 3 last 3 last 3 last 3 last 3 last 3 last 3cial history history history financial financial financial financial financial financial financial financial financial financial financialyears) of past of past of past years years years years years years years years years years years
4 finan- 4 finan- 4 finan-cial cial cialyears) year) years)
Price of 342.00 224.05 213.20 209.80 234.75 214.70 196.60 229.40 201.10 238.80 315.30 342.50 491.90 301.10 221.95the un-derlyingshare inmarketat thetime ofoptiongrant (in Rs.)
Fair value of options based on Black-Scholes’ Enhanced Model i.e. Enhanced FASB 123 Model for ESOP-2004
Assumptions: Grant Date- Grant Date- Grant Date- Grant Date- Grant Date- Grant Date- Grant Date- Grant Date-17/04/2008 29/04/2008 30/07/2008 22/10/2008 23/10/2008 30/01/2009 28/04/2009 29/07/2009
Risk-free 7.93%(for 7.96 % (for 9.28%(for 7.44%(for 7.41% (for 6.17%(for 5.95%(for 6.32%(forinterest rate 4.26 years, 4.27 years, 4.57 years, 4.57 years, 5 years, 5.08 years, 4.98 years, 4.71 years,
source- NSE/ source-NSE source-NSE/ source-NSE/ source-NSE/ source-NSE/ source-NSE/ source-NSE/thReuters as as on 29 Reuters as Reuters as Reuters as Reuters as Reuters as Reuters as
nd nd th th thon 17th April Apr 2008) on 30th July on 22 on 22 on 29 on 27 April, on 28 July,2008) 2008) October October, January, 2009) 2009)
2008) 2008) 2009)
Expected life 7 yrs. 7 yrs. 7 yrs. 7 yrs. 7 yrs. 7 yrs. 7 yrs. 7 yrs.
Expected 1.25 x 1.25 x 1.25 x 1.25 x 1.25 x 1.25 x 1.25 x 1.25 xMultiple
Expected 60.79% 60.92 % 61.97% 63.41% 63.45% 57.59% 57.62% 58.71%volatility (based on 5 (based on 5 (based on 5 (based on 5 (based on 5 (based on 5 (based on 5 (based on 5
years stock years stock years stock years stock years stock years stock years stock years stockdata from data from data from data from data from data from data from data fromNSE) NSE) NSE) NSE) NSE) NSE) NSE) NSE)
Expected 0.54%(based 0.54%(based 0.44%(based 0.44%(based 0.44% 0.44% 0.44%(based 0.44%Dividends on weighted on weighted on weighted on weighted (Weighted (Weighted on weighted (Weighted
average average average of average of average average average of averagedividend dividend the dividend the dividend dividend dividend the dividend dividendhistory for history for history of history of yield for yield for history of yield forpast 3 past 3 past 3 past 3 last 3 last 3 past 3 last 3financial financial financial financial financial financial financial financialyears) years) years) years) years ) years) years) years)
Price of the 170 176.55 95.10 100.25 94.95 62.45 67.15 84.95underlyingshare inmarket at thetime of option grant (in Rs.)
Fair value of options based on Black-Scholes Enhanced Model i.e. Enhanced FASB 123 Model for DSOP-2005
Assumptions Grant Date-11/08/05 Grant Date -12/12/06 Grant Date -25/01/07 Grant Date- 19/06/07 Grant Date-29/04/2009
Risk-free interest rate 6.56%(for 5 years, 7.56% (for 4.58 years, 7.68% (for 4.58 years, 7.87% (for 4.32 years, 6.11% (for 5.68 years,source-NSE/ Reuters source-NSE/ Reuters source-NSE/ Reuters source NSE/Reuters source- NSE/Reuters
th th th th thas on 11 Aug 2005) as on 12 Dec 2006) as on 25 Jan 2007) as on 19 June, 2007) as on 29 April, 2009
Expected life 7 yrs 7 yrs 7 yrs 7 yrs 7 years
Expected Multiple 1.25 x 1.25 x 1.25 x 1.25x 1.25x
Expected volatility 61.46% (based on 54.73% (based on 55.03% (based on 56.20% (based on 57.63% (based on5 years stock data 5 years stock data 5 years stock data 5 year stock data 5 years stock datafrom NSE) from NSE) from NSE) from NSE) from NSE)
Expected dividends 0.58%(Weighted 0.46%(Weighted 0.46%(Weighted 0.54% (Weighted 0.44% (weightedaverage dividend average dividend average dividend average dividend average dividendyield for last 3 yield for last 3 yield for last 3 yield for last 3 yield for last 3financial years) financial years) financial years) financial years) financial years)
Price of the under- 228.30 242.60 319.25 425.25 65.30lying share in marketat the time of optiongrant (in Rs.)
th* Two Options granted before the record date i.e. 18 July, 2007 under the above plans entitles the holder to three Options of the Company.
Fair value of options based on Black-Scholes’ Options Pricing Formula for ESOP-2009
Assumptions:- Grant Date-28/1/10 Grant Date- Grant date- Grant date – Grant Date-(Options subsequently 12/03/10 12/08/2010 29//10/2010 08/02/2011cancelled
Risk-free interest rate 7.39%(for 5 years, 7.44% (for 5 years, 7.48% (for zero 7.72% (For zero 8.03% (For zerosource-NSE/ source-NSE/ coupon interest rate coupon interest rate coupon interest rateReuters as on Reuters as on on Government on Government on Government 27th Jan 2010) 12th March 2010) Securities derived Securities derived Securities derived
from zero coupon from zero coupon from zero couponyield curve as on yield curve as on yield curve as on
th th th11 August, 2010) 28 October, 2010) 8 February, 2011)
Expected life 7 yrs. 7 yrs. 7 years 7 years 7 years
Expected Multiple 1.25 x 1.25 x 1.25x 1.25x 1.25x
Expected volatility 71.52%(based on 72.19%(based on 58.21% (based on 58.17% (based on 58.73% (based on5 years stock data 5 years stock data 5 years stock data 5 years stock data 5 years stock datafrom NSE) from NSE) from NSE) from NSE) from NSE)
Expected Dividends 0.97%(Weighted 0.97% (Weighted 0.58% (weighted 0.58% (weighted 0.58% (weighted average dividend average dividend average of the average of the average of theyield for last 5 yield for last 5 dividend history of dividend history of dividend history of financial years) financial years) past 5 financial years) past 5 financial years) past 5 financial years)
Price of the under- 71.11 73.86 62.80 66.40 46.30lying share in market at the time of optiongrant (in Rs.)
For and on behalf of the Board of DirectorsMoser Baer India Limited
Place: New Delhi Deepak PuriDate: May 14, 2014 Chairman & Managing Director
28 29
ANNEXURE B
Information as per Section 217(1) (e) of the Companies
Act, 1956, read with the Companies (Disclosure of
Particulars in the Report of Board of Directors) Rules,
1988 and forming part of the Directors’ Report for the nine stmonth period ended 31 December, 2013.
A. Conservation of energy
Through internal development and efforts on energy
saving, we have achieved a cumulative saving of 500
KW with small additional investment of Rs 2.5
million.
i) Intra-plant consolidation was implemented to
reduce the plant load. We hope to reduce
power consumption by 750 KW in the year
2014-15.
ii) Generation of captive power was reduced to
cut down buying of Fuel oil, non continuous
Loads were switched to state grid power.
iii) Implementation of power cost reduction plans
ongoing
B. Technology absorption, adaptation and innovation, research & development
With finalization of high definition formats like BDR
and BDRE, Optical media is now fully matured and
developed technology. Therefore, the company is
mainly focusing on the innovation related to the cost
reduction activities to make this business
sustainable. During the year, a number of such
projects were completed through design and
process innovation. These innovations have been
successfully incorporated into some of the
company’s products and an ongoing effort is being
made to improve the utilization of this innovation and
produce newer innovative products with enhanced
features.
Our Company is a part of many International Forums
and R&D initiatives that are dedicated to the
development of future formats like Blue-ray. Such
participative activities have significantly enhanced
the image of our company as an individual entity and
our country as a whole in the mind of the
International community.
1. Efforts, in brief, made towards technology absorption, adaptation and innovation
Moser Baer continued to innovate on BDR/RE format and successfully mastered this technology. An alternate stack design has developed to make BDR product more cost competitive with enhanced reliability and life time without compromising the other performance.
2. Benefits derived as a result of the above efforts:
MBIL has expanded its market share due to its cost competitiveness and enhanced features in BDR and BDRE in Japan market as well as other world markets where these formats are getting popular.
3. Technology imported during last 5 years:
Technology imported Year of Has Technology If not fully absorbed, area where import been fully absorbed? this has not taken place, reasons
there for and future plans of actions
Technology for Dual Layer 2007 Yes NADVD+/- R (2P) from MKM
Technology for BDR from OMT 2008 Yes NA
Technology for BDRE 2010 Yes NA(ODM Process) from Panasonic
Technology for BDR (ODM 2011 Yes NAProcess) from Panasonic
C. Research & Development
The specific areas in which Research & Development was carried out by your Company and the benefits derived as a result thereof are as follows:
1. Specific areas in which R&D carried out by the company
1.1. Blu-Ray Development
1.1.1. Moser Baer continued to innovate BDR/RE format and successfully developed different product variants to meet customer requirement.
1.2. BDR/RE, DVDR / RW, DL, CDRW new customers qualification
1.2.1. Working with Sony and Imation for different variants of BDR/ BDRE.
1.2.2. BDR 1X-6X qualification with Sony is under final stage
1.3. Printable Surface
1.3.1. Smooth finish inkjet printable BDR has been developed for European customer.
1.3.2. Developed glossy water resistant inkjet printable CDR & DVDR product for European Customers.
1.4. Mastering & Stampering unit
1.4.1. BDR 1x-4x, BDR 1X-6X and BDRE 1X-2X stamper developed in-house and regularly used for production. A substantial improvement on groove g e o m e t r y a n d m o r p h o l o g y accomplished through innovative photo-resist process.
1.4.2. C o n t r i b u t e d t o w a r d s g r e e n e r environment - company initiated to recycle 20 % of scrap nickel at stamper manufacturing.
1.5. Cost Competitiveness Projects
1.5.1. MBI developed in-house bonding glue as cheaper import substitute and successfully implemented in DVDR format.
1.5.2 MBI developed a low cost unique reflective layer alloy target for CDR and DVDR which can replace the expensive silver target.
1.5.3 In-house development of controller chip for USB drives
1.6. Materials Development for Optoelectronics
Application
1.6.1. Successfully developed UV acrylate
based bonding glue and lacquer for
CDR and DVDR
2. New Initiatives
2.1. Initiated development of Acrylate based
printing ink and varnishes as an import
substitute;
2.2. Initiated high end instrumental analysis
like SEM, EDAX, XRD, and AFM for failure
analysis and product development;
2.3 In-house development of LED products
based on key OEM requirements; and
2.4 Developed and commercialized tokens for
digital signature on solid state media.
3 New Equipment added in R & D Lab
No major equipment in R&D acquired during the
period April - December, 2013.
4 Benefits derived as a result of the above R & D
4.1 The development of unique six layers hybrid
stack for BDR 1X-6X and BDR 1X-4x to improve
the product reliability and yield.
4.2 MBIL has developed Acrylate based bonding
glue as an import substitute for application in
DVDR bonding process.
5. Future plan of actions:
5.1. MBI will focus to develop acrylate based UV
printing ink as an import substitute
5.2. MBI will focus to develop BDR/RE cover layer
as an import substitute.
Expenditure on R& D
Recurring expenses of Rs 41.13 million was incurred
during the period towards R&D expenses, which is 0.4%
of the total turnover of the Company.
These expenses are part of expenses incurred under
various revenue or capital heads.
Foreign exchange earnings and outgo
Total foreign exchange earned comprising of FOB value
of exports, interest, insurance claims and dividend
received was Rs 5,492 million, where as total foreign
exchange used (comprising of CIF value of imports,
dividend and other outgoings) was Rs 3,059 million.
For and on behalf of the Board of DirectorsMoser Baer India Limited
Place: New Delhi Deepak PuriDate: May 14, 2014 Chairman & Managing Director
28 29
ANNEXURE B
Information as per Section 217(1) (e) of the Companies
Act, 1956, read with the Companies (Disclosure of
Particulars in the Report of Board of Directors) Rules,
1988 and forming part of the Directors’ Report for the nine stmonth period ended 31 December, 2013.
A. Conservation of energy
Through internal development and efforts on energy
saving, we have achieved a cumulative saving of 500
KW with small additional investment of Rs 2.5
million.
i) Intra-plant consolidation was implemented to
reduce the plant load. We hope to reduce
power consumption by 750 KW in the year
2014-15.
ii) Generation of captive power was reduced to
cut down buying of Fuel oil, non continuous
Loads were switched to state grid power.
iii) Implementation of power cost reduction plans
ongoing
B. Technology absorption, adaptation and innovation, research & development
With finalization of high definition formats like BDR
and BDRE, Optical media is now fully matured and
developed technology. Therefore, the company is
mainly focusing on the innovation related to the cost
reduction activities to make this business
sustainable. During the year, a number of such
projects were completed through design and
process innovation. These innovations have been
successfully incorporated into some of the
company’s products and an ongoing effort is being
made to improve the utilization of this innovation and
produce newer innovative products with enhanced
features.
Our Company is a part of many International Forums
and R&D initiatives that are dedicated to the
development of future formats like Blue-ray. Such
participative activities have significantly enhanced
the image of our company as an individual entity and
our country as a whole in the mind of the
International community.
1. Efforts, in brief, made towards technology absorption, adaptation and innovation
Moser Baer continued to innovate on BDR/RE format and successfully mastered this technology. An alternate stack design has developed to make BDR product more cost competitive with enhanced reliability and life time without compromising the other performance.
2. Benefits derived as a result of the above efforts:
MBIL has expanded its market share due to its cost competitiveness and enhanced features in BDR and BDRE in Japan market as well as other world markets where these formats are getting popular.
3. Technology imported during last 5 years:
Technology imported Year of Has Technology If not fully absorbed, area where import been fully absorbed? this has not taken place, reasons
there for and future plans of actions
Technology for Dual Layer 2007 Yes NADVD+/- R (2P) from MKM
Technology for BDR from OMT 2008 Yes NA
Technology for BDRE 2010 Yes NA(ODM Process) from Panasonic
Technology for BDR (ODM 2011 Yes NAProcess) from Panasonic
C. Research & Development
The specific areas in which Research & Development was carried out by your Company and the benefits derived as a result thereof are as follows:
1. Specific areas in which R&D carried out by the company
1.1. Blu-Ray Development
1.1.1. Moser Baer continued to innovate BDR/RE format and successfully developed different product variants to meet customer requirement.
1.2. BDR/RE, DVDR / RW, DL, CDRW new customers qualification
1.2.1. Working with Sony and Imation for different variants of BDR/ BDRE.
1.2.2. BDR 1X-6X qualification with Sony is under final stage
1.3. Printable Surface
1.3.1. Smooth finish inkjet printable BDR has been developed for European customer.
1.3.2. Developed glossy water resistant inkjet printable CDR & DVDR product for European Customers.
1.4. Mastering & Stampering unit
1.4.1. BDR 1x-4x, BDR 1X-6X and BDRE 1X-2X stamper developed in-house and regularly used for production. A substantial improvement on groove g e o m e t r y a n d m o r p h o l o g y accomplished through innovative photo-resist process.
1.4.2. C o n t r i b u t e d t o w a r d s g r e e n e r environment - company initiated to recycle 20 % of scrap nickel at stamper manufacturing.
1.5. Cost Competitiveness Projects
1.5.1. MBI developed in-house bonding glue as cheaper import substitute and successfully implemented in DVDR format.
1.5.2 MBI developed a low cost unique reflective layer alloy target for CDR and DVDR which can replace the expensive silver target.
1.5.3 In-house development of controller chip for USB drives
1.6. Materials Development for Optoelectronics
Application
1.6.1. Successfully developed UV acrylate
based bonding glue and lacquer for
CDR and DVDR
2. New Initiatives
2.1. Initiated development of Acrylate based
printing ink and varnishes as an import
substitute;
2.2. Initiated high end instrumental analysis
like SEM, EDAX, XRD, and AFM for failure
analysis and product development;
2.3 In-house development of LED products
based on key OEM requirements; and
2.4 Developed and commercialized tokens for
digital signature on solid state media.
3 New Equipment added in R & D Lab
No major equipment in R&D acquired during the
period April - December, 2013.
4 Benefits derived as a result of the above R & D
4.1 The development of unique six layers hybrid
stack for BDR 1X-6X and BDR 1X-4x to improve
the product reliability and yield.
4.2 MBIL has developed Acrylate based bonding
glue as an import substitute for application in
DVDR bonding process.
5. Future plan of actions:
5.1. MBI will focus to develop acrylate based UV
printing ink as an import substitute
5.2. MBI will focus to develop BDR/RE cover layer
as an import substitute.
Expenditure on R& D
Recurring expenses of Rs 41.13 million was incurred
during the period towards R&D expenses, which is 0.4%
of the total turnover of the Company.
These expenses are part of expenses incurred under
various revenue or capital heads.
Foreign exchange earnings and outgo
Total foreign exchange earned comprising of FOB value
of exports, interest, insurance claims and dividend
received was Rs 5,492 million, where as total foreign
exchange used (comprising of CIF value of imports,
dividend and other outgoings) was Rs 3,059 million.
For and on behalf of the Board of DirectorsMoser Baer India Limited
Place: New Delhi Deepak PuriDate: May 14, 2014 Chairman & Managing Director
30 31
CORPORATE GOVERNANCE REPORT
CORPORATE GOVERNANCE
Corporate Governance is about commitment to values and ethical business conduct. Corporate Governance means a set of systems procedures, policies, practices, standards put in place by a corporate to ensure that relationship with various stakeholders is maintained in transparent and honest manner and it works for the benefit of everyone concerned.
Corporate Governance is concerned with the way corporate entities are governed and evolves with the growth and circumstances of a company. It ensures that the enterprise adheres to the accepted ethical standards and best practices as well as formal laws while steering an organization in the desired direction. Accordingly, timely and accurate disclosure of information regarding the financial situation, performance, ownership and governance of the company is an important part of corporate governance. This improves public understanding of the structure, activities and policies of the organization.
Corporate governance guidelines and best practices have evolved over a period of time and in India, are enshrined in Clause 49 of the Listing Agreement.
1. COMPANY’S PHILOSOPHY ON CORPORATE GOVERNANCE
Corporate governance is the application of best management practices, compliance of law in true letter and spirit and adherence to ethical standards for effective management and distribution of wealth and discharge of social responsibility for sustainable development of all stakeholders.
Moser Baer believes that “Corporate Governance” refers to the processes and structure by which the business and affairs of the Company are directed and managed, in order to enhance long term shareholder value through enhancing corporate performance and accountability, whilst taking into account the interests of all stakeholders.
The Corporate Governance philosophy of the Company is based on the following principles:
?Satisfaction of the spirit of the law through ethical business conduct;
?Transparency and a high degree of disclosure levels;
?Truthful communication about how the company is run internally;
?A simple and transparent corporate structure driven solely by the business needs;
?Strict compliance with Clause 49 of the Listing Agreement as amended from time to time;
?Establishment of an efficient corporate structure for the management of the Company’s affairs;
?Management is the trustee of the shareholders’ capital and not the owner.
The Company has also evolved the Code of Corporate Governance to ensure the best practices of Corporate Governance within the Company.
2. BOARD OF DIRECTORS
Moser Baer believes that at the core of its corporate governance practice is the Board, which oversees how the management serves and protects the long-term interests of all the stakeholders of the Company. An active, well-informed and independent board is necessary to ensure the highest standards of corporate governance. Our Board exercises its fiduciary responsibilities in the widest sense of the term.
Moser Baer adheres to good Corporate Governance through clear identification of powers, roles, responsibilities and accountability of the Board. Moser Baer believes that composition of board is conducive for making decisions expediently, with the benefit of a variety of perspectives and skills, and in the best interests of the company as a whole rather than of individual shareholders or interest groups.
Independent Board is essential for sound corporate governance. Moser Baer believes in appropriate mix of executive and independent directors on the Board to maintain independence of the Board and separate management functions from it.
An independent director is independent of management and free of any business or other relationship that could materially interfere or could reasonably be perceived to materially interfere with the exercise of their unfettered and independent judgment.
Definition of ‘Independent Director’ as per Clause 49 of the Listing Agreement
‘Independent Director’ shall mean a Non-Executive Director of the Company who apart from receiving director’s remuneration, does not have any material pecuniary relationships or transactions with the company, its promoters, its directors, its senior management or its holding company, its subsidiaries and associates which may affect independence of the director
?is not related to promoters or persons occupying management positions at the board level or at one level below the board;
?has not been an executive of the company in the immediately preceding three financial years;
?is not a partner or an executive or was not partner or an executive during the preceding three years, of any of the following:
i) the statutory audit firm or the internal audit firm that is associated with the company, and
ii) The legal firm(s) and consulting firm(s) that have a material association with the company.
?Is not a material supplier, service provider or customer or a lessor or lessee of the company, which may affect independence of the director; and
?Is not a substantial shareholder of the company i.e. own two percent or more of the block of voting shares.
?Is not less than 21 years of age.
COMPOSITION OF BOARD
The Company has a broad-based Board consisting of mix of Executive, Non-Executive and Independent Directors. As on December 31, 2013, the Board of Moser Baer India Limited comprises of 7 (Seven) Directors, out of which two Executive Directors and Five Non – Executive Directors. The Board represents an optimal mix of professionalism, knowledge and experience. The details relating to Composition & Category of Directors, Directorships held by them in other companies and their membership and chairmanship on various Committees of Board of other companies is as follows:
COMPOSITION OF THE BOARD
Name of the Category Equity Investors/ Designation No. of other No. of CommitteeDirector Lenders Directorships in membership
represented Public Companies (including MBIL’sIncluding Private Committees)
Companies whichis a subsidiary ofPublic Company
Chairman Member
Mr. Deepak Puri Promoter and N.A. Chairman and 10 2 4Executive Managing
Director
Mrs. Nita Puri Executive N.A. Whole Time 10 2 3Director
Mr. John William Non-Executive Electra Partners Director 1 1 0Edward Levack and Nominee Mauritius Limited
Mr. Frank E. Independent and N.A. Director 2 0 2Dangeard* Non-Executive
Mr. Bernhard Gallus Independent and N.A. Director 2 0 2Non-Executive
Mr. K Ajit Kumar# Non-Executive, EXIM Bank Director 2 0 0Independent,Nominee
Mr. Vineet Sharma Independent and N.A Director 3 0 2Non-Executive
Mr. Sanjay Jain $ Independent and N.A Director 0 1 0Non-Executive
* Mr. Franck E. Dangeard resigned as Non Executive Director w.e.f. April 01, 2014.
#Mr. K Ajit Kumar appointed as Nominee Director on behalf of EXIM Bank. He is Non-Executive and, Independent Director with effect from February 7, 2014.
$Mr. Sanjay Jain appointed as Alternate Director to Mr. Bernhard Gallus w.e.f. August 06, 2013 and Effective from November 13, 2013 he ceased to be Alternate Director and inducted as Non Executive Independent Director.
Notes:
a) The directorships held by the Directors, as mentioned above do not include the Alternate directorships, directorships held in Private Limited Companies, Foreign Companies and Companies under Section 25 of the Companies Act, 1956.
30 31
CORPORATE GOVERNANCE REPORT
CORPORATE GOVERNANCE
Corporate Governance is about commitment to values and ethical business conduct. Corporate Governance means a set of systems procedures, policies, practices, standards put in place by a corporate to ensure that relationship with various stakeholders is maintained in transparent and honest manner and it works for the benefit of everyone concerned.
Corporate Governance is concerned with the way corporate entities are governed and evolves with the growth and circumstances of a company. It ensures that the enterprise adheres to the accepted ethical standards and best practices as well as formal laws while steering an organization in the desired direction. Accordingly, timely and accurate disclosure of information regarding the financial situation, performance, ownership and governance of the company is an important part of corporate governance. This improves public understanding of the structure, activities and policies of the organization.
Corporate governance guidelines and best practices have evolved over a period of time and in India, are enshrined in Clause 49 of the Listing Agreement.
1. COMPANY’S PHILOSOPHY ON CORPORATE GOVERNANCE
Corporate governance is the application of best management practices, compliance of law in true letter and spirit and adherence to ethical standards for effective management and distribution of wealth and discharge of social responsibility for sustainable development of all stakeholders.
Moser Baer believes that “Corporate Governance” refers to the processes and structure by which the business and affairs of the Company are directed and managed, in order to enhance long term shareholder value through enhancing corporate performance and accountability, whilst taking into account the interests of all stakeholders.
The Corporate Governance philosophy of the Company is based on the following principles:
?Satisfaction of the spirit of the law through ethical business conduct;
?Transparency and a high degree of disclosure levels;
?Truthful communication about how the company is run internally;
?A simple and transparent corporate structure driven solely by the business needs;
?Strict compliance with Clause 49 of the Listing Agreement as amended from time to time;
?Establishment of an efficient corporate structure for the management of the Company’s affairs;
?Management is the trustee of the shareholders’ capital and not the owner.
The Company has also evolved the Code of Corporate Governance to ensure the best practices of Corporate Governance within the Company.
2. BOARD OF DIRECTORS
Moser Baer believes that at the core of its corporate governance practice is the Board, which oversees how the management serves and protects the long-term interests of all the stakeholders of the Company. An active, well-informed and independent board is necessary to ensure the highest standards of corporate governance. Our Board exercises its fiduciary responsibilities in the widest sense of the term.
Moser Baer adheres to good Corporate Governance through clear identification of powers, roles, responsibilities and accountability of the Board. Moser Baer believes that composition of board is conducive for making decisions expediently, with the benefit of a variety of perspectives and skills, and in the best interests of the company as a whole rather than of individual shareholders or interest groups.
Independent Board is essential for sound corporate governance. Moser Baer believes in appropriate mix of executive and independent directors on the Board to maintain independence of the Board and separate management functions from it.
An independent director is independent of management and free of any business or other relationship that could materially interfere or could reasonably be perceived to materially interfere with the exercise of their unfettered and independent judgment.
Definition of ‘Independent Director’ as per Clause 49 of the Listing Agreement
‘Independent Director’ shall mean a Non-Executive Director of the Company who apart from receiving director’s remuneration, does not have any material pecuniary relationships or transactions with the company, its promoters, its directors, its senior management or its holding company, its subsidiaries and associates which may affect independence of the director
?is not related to promoters or persons occupying management positions at the board level or at one level below the board;
?has not been an executive of the company in the immediately preceding three financial years;
?is not a partner or an executive or was not partner or an executive during the preceding three years, of any of the following:
i) the statutory audit firm or the internal audit firm that is associated with the company, and
ii) The legal firm(s) and consulting firm(s) that have a material association with the company.
?Is not a material supplier, service provider or customer or a lessor or lessee of the company, which may affect independence of the director; and
?Is not a substantial shareholder of the company i.e. own two percent or more of the block of voting shares.
?Is not less than 21 years of age.
COMPOSITION OF BOARD
The Company has a broad-based Board consisting of mix of Executive, Non-Executive and Independent Directors. As on December 31, 2013, the Board of Moser Baer India Limited comprises of 7 (Seven) Directors, out of which two Executive Directors and Five Non – Executive Directors. The Board represents an optimal mix of professionalism, knowledge and experience. The details relating to Composition & Category of Directors, Directorships held by them in other companies and their membership and chairmanship on various Committees of Board of other companies is as follows:
COMPOSITION OF THE BOARD
Name of the Category Equity Investors/ Designation No. of other No. of CommitteeDirector Lenders Directorships in membership
represented Public Companies (including MBIL’sIncluding Private Committees)
Companies whichis a subsidiary ofPublic Company
Chairman Member
Mr. Deepak Puri Promoter and N.A. Chairman and 10 2 4Executive Managing
Director
Mrs. Nita Puri Executive N.A. Whole Time 10 2 3Director
Mr. John William Non-Executive Electra Partners Director 1 1 0Edward Levack and Nominee Mauritius Limited
Mr. Frank E. Independent and N.A. Director 2 0 2Dangeard* Non-Executive
Mr. Bernhard Gallus Independent and N.A. Director 2 0 2Non-Executive
Mr. K Ajit Kumar# Non-Executive, EXIM Bank Director 2 0 0Independent,Nominee
Mr. Vineet Sharma Independent and N.A Director 3 0 2Non-Executive
Mr. Sanjay Jain $ Independent and N.A Director 0 1 0Non-Executive
* Mr. Franck E. Dangeard resigned as Non Executive Director w.e.f. April 01, 2014.
#Mr. K Ajit Kumar appointed as Nominee Director on behalf of EXIM Bank. He is Non-Executive and, Independent Director with effect from February 7, 2014.
$Mr. Sanjay Jain appointed as Alternate Director to Mr. Bernhard Gallus w.e.f. August 06, 2013 and Effective from November 13, 2013 he ceased to be Alternate Director and inducted as Non Executive Independent Director.
Notes:
a) The directorships held by the Directors, as mentioned above do not include the Alternate directorships, directorships held in Private Limited Companies, Foreign Companies and Companies under Section 25 of the Companies Act, 1956.
32 33
b) The committees considered for the purpose are those prescribed under Clause 49(I)(C)(ii) of the Listing Agreement(s) viz. audit committee and Stakeholders' Relationship committee of Indian Public Limited Companies and Private Limited Companies which are Public Limited Companies in terms of Section 3(1)(iv)(c) of the Companies Act, 1956.
c) None of the Directors on the Board is a Member of more than 10 Committees or Chairman of more than 5 Committees (as specified in Clause 49 of the Listing Agreement) across all the public companies in which the person is a Director. Necessary disclosures regarding Committee positions in other public limited companies as on December 31, 2013 have been made by the Directors.
d) The non - executive directors do not hold any equity shares and warrants of the Company.
BOARD MEETINGS & ATTENDANCE
The information as required under Annexure I-A to Clause 49 of the Listing Agreement is made available to the Board. Adequate information is circulated as part of the agenda papers to enable the Board to take informed decisions.
During the nine months financial period ended on 31.12.2013 the Board met on the following dates:
May 30, 2013, August 8, 2013, November 13, 2013 and November 14, 2013
ATTENDANCE RECORD OF DIRECTORS
Name of the Director Board meetings Meetings Attended Attended last AGMheld during held on Monday,
the year September 30, 2013
Present in Attended throughPerson Audio /Video
conferencing
Mr. Deepak Puri 4 3 0 Yes
Mrs. Nita Puri 4 3 0 No
Mr. John William Edward Levack 4 3 0 No
Mr. Bernhard Gallus 3 0 2 No
Mr. Franck E. Dangeard# 4 2 0 No
Mr. Sanjay Jain* 3 3 0 Yes
Mr. Vineet Sharma 4 3 0 No
Other provisions as to Board and Committees
The Board meets at regular intervals to discuss and decide on Company/business policy and strategy apart from other Board business. Apart from placing the statutory required information before the Board Members, it is the policy of the Company to regularly place the information / matter involving major decisions like Annual Budget, Technology Collaboration, Investments, Quarterly Results, and Quarterly Compliance Reports on all laws applicable to the Company and other material information. All the information relevant to the Company as required under various Clauses of the listing agreement is also made available to the Board.
The Board/ Committee meetings are pre-scheduled and a tentative annual calendar of Board and Committee meetings is circulated to the Directors well in advance to facilitate them to plan their schedules and to ensure meaningful participation in the meetings.
During the financial period ended December 31, 2013, four Board Meetings were held as per the minimum requirement prescribed in Clause 49 of the Listing Agreement. The intervening period between the Board Meetings were within the maximum time gap prescribed under Companies Act, 1956 and Clause 49 of the Listing Agreement
Information available to the Board
During the financial period ended December 31, 2013, information as mentioned in Annexure 1A to Clause 49 of the Listing Agreement has been placed before the Board for its consideration.
3. BOARD COMMITTEES
The Board Committees play a crucial role in the governance structure of the Company and have been constituted to deal with specific areas / activities which concern the Company and need a closer review. The Board Committees are set up under the formal approval of the Board, to carry out clearly defined roles which are considered to be performed by Members of the Board, as a part of good governance practice. The Board supervises the execution of its responsibilities by the Committees and is responsible for their action. Recommendations of the Committees are submitted to the Board of Directors for approval. The Minutes of the meetings of all the Committees are placed before the Board for review. The
frequency and agenda of meetings of each of these Committees is determined by the Chairman of the Board/ Executive Director in consultation with the Chairman of the concerned Committee. These Committees meet as and when the need arises.
The Board currently has following committees:
A. Audit Committee;
B. Nomination and Remuneration Committee;
C. Stakeholders' Relationship Committee;
D. Corporate Governance Committee;
E. Banking and Finance Committee;
F. Project Dezire Committee;
G. Corporate Social Responsibility Committee and
H. FCCB Committee
A. AUDIT COMMITTEE
Besides, the regulatory requirement for constituting an Audit Committee, the existence of an independent audit committee is recognized internationally as an important feature of good corporate governance.
The ability of the audit committee to exercise independent judgment is crucial for judging the integrity of financial statements of the Company. The Company has a qualified and independent Audit Committee.
(i) Primary Objective
The primary objective of the Audit Committee is to monitor and provide effective supervision of the management’s financial reporting process with a view to ensure accurate, timely and proper disclosures and transparency, integrity and quality of financial reporting.
The Audit Committee has the power to do the following:-
a) To investigate any activity within its terms of reference.
b) To seek information from any employee.
c) To obtain outside legal or other professional advice.
d) To secure attendance of outsiders with relevant expertise, if it considers necessary.
(ii) Role of the Committee
The role of the Audit Committee has always been updated to comply with the amendments brought in by SEBI in listing agreements. Thus, the role of the Committee is:
a) Oversight of the Company’s financial reporting process and the disclosure of its financial information to ensure that the financial statement is correct, sufficient and credible.
b) Recommending to the Board of Directors the appointment, re-appointment and, if required, the replacement or removal of the Statutory Auditor and the fixation of audit fee.
c) Approval of payment to Statutory Auditors for any other services rendered by the Statutory Auditors.
d) Reviewing, with the management, the annual financial statements before submission to the Board of Directors for approval, with particular reference to:
?Matters required to be included in the Director’s Responsibility Statement to be included in the Board’s report in terms of clause (2AA) of section 217 of the Companies Act, 1956
?Changes, if any, in accounting policies and practices and reasons for the same.
?Major accounting entries involving estimates based on exercise of judgment by management.
?Significant adjustments made in the financial statements arising out of audit findings.
?Compliance with listing and other legal requirements relating to financial statements.
?Disclosure of any related party transactions.
?Qualifications in draft audit report.
e) Reviewing with the management, the quarterly financial statements before submission to the Board for approval.
32 33
b) The committees considered for the purpose are those prescribed under Clause 49(I)(C)(ii) of the Listing Agreement(s) viz. audit committee and Stakeholders' Relationship committee of Indian Public Limited Companies and Private Limited Companies which are Public Limited Companies in terms of Section 3(1)(iv)(c) of the Companies Act, 1956.
c) None of the Directors on the Board is a Member of more than 10 Committees or Chairman of more than 5 Committees (as specified in Clause 49 of the Listing Agreement) across all the public companies in which the person is a Director. Necessary disclosures regarding Committee positions in other public limited companies as on December 31, 2013 have been made by the Directors.
d) The non - executive directors do not hold any equity shares and warrants of the Company.
BOARD MEETINGS & ATTENDANCE
The information as required under Annexure I-A to Clause 49 of the Listing Agreement is made available to the Board. Adequate information is circulated as part of the agenda papers to enable the Board to take informed decisions.
During the nine months financial period ended on 31.12.2013 the Board met on the following dates:
May 30, 2013, August 8, 2013, November 13, 2013 and November 14, 2013
ATTENDANCE RECORD OF DIRECTORS
Name of the Director Board meetings Meetings Attended Attended last AGMheld during held on Monday,
the year September 30, 2013
Present in Attended throughPerson Audio /Video
conferencing
Mr. Deepak Puri 4 3 0 Yes
Mrs. Nita Puri 4 3 0 No
Mr. John William Edward Levack 4 3 0 No
Mr. Bernhard Gallus 3 0 2 No
Mr. Franck E. Dangeard# 4 2 0 No
Mr. Sanjay Jain* 3 3 0 Yes
Mr. Vineet Sharma 4 3 0 No
Other provisions as to Board and Committees
The Board meets at regular intervals to discuss and decide on Company/business policy and strategy apart from other Board business. Apart from placing the statutory required information before the Board Members, it is the policy of the Company to regularly place the information / matter involving major decisions like Annual Budget, Technology Collaboration, Investments, Quarterly Results, and Quarterly Compliance Reports on all laws applicable to the Company and other material information. All the information relevant to the Company as required under various Clauses of the listing agreement is also made available to the Board.
The Board/ Committee meetings are pre-scheduled and a tentative annual calendar of Board and Committee meetings is circulated to the Directors well in advance to facilitate them to plan their schedules and to ensure meaningful participation in the meetings.
During the financial period ended December 31, 2013, four Board Meetings were held as per the minimum requirement prescribed in Clause 49 of the Listing Agreement. The intervening period between the Board Meetings were within the maximum time gap prescribed under Companies Act, 1956 and Clause 49 of the Listing Agreement
Information available to the Board
During the financial period ended December 31, 2013, information as mentioned in Annexure 1A to Clause 49 of the Listing Agreement has been placed before the Board for its consideration.
3. BOARD COMMITTEES
The Board Committees play a crucial role in the governance structure of the Company and have been constituted to deal with specific areas / activities which concern the Company and need a closer review. The Board Committees are set up under the formal approval of the Board, to carry out clearly defined roles which are considered to be performed by Members of the Board, as a part of good governance practice. The Board supervises the execution of its responsibilities by the Committees and is responsible for their action. Recommendations of the Committees are submitted to the Board of Directors for approval. The Minutes of the meetings of all the Committees are placed before the Board for review. The
frequency and agenda of meetings of each of these Committees is determined by the Chairman of the Board/ Executive Director in consultation with the Chairman of the concerned Committee. These Committees meet as and when the need arises.
The Board currently has following committees:
A. Audit Committee;
B. Nomination and Remuneration Committee;
C. Stakeholders' Relationship Committee;
D. Corporate Governance Committee;
E. Banking and Finance Committee;
F. Project Dezire Committee;
G. Corporate Social Responsibility Committee and
H. FCCB Committee
A. AUDIT COMMITTEE
Besides, the regulatory requirement for constituting an Audit Committee, the existence of an independent audit committee is recognized internationally as an important feature of good corporate governance.
The ability of the audit committee to exercise independent judgment is crucial for judging the integrity of financial statements of the Company. The Company has a qualified and independent Audit Committee.
(i) Primary Objective
The primary objective of the Audit Committee is to monitor and provide effective supervision of the management’s financial reporting process with a view to ensure accurate, timely and proper disclosures and transparency, integrity and quality of financial reporting.
The Audit Committee has the power to do the following:-
a) To investigate any activity within its terms of reference.
b) To seek information from any employee.
c) To obtain outside legal or other professional advice.
d) To secure attendance of outsiders with relevant expertise, if it considers necessary.
(ii) Role of the Committee
The role of the Audit Committee has always been updated to comply with the amendments brought in by SEBI in listing agreements. Thus, the role of the Committee is:
a) Oversight of the Company’s financial reporting process and the disclosure of its financial information to ensure that the financial statement is correct, sufficient and credible.
b) Recommending to the Board of Directors the appointment, re-appointment and, if required, the replacement or removal of the Statutory Auditor and the fixation of audit fee.
c) Approval of payment to Statutory Auditors for any other services rendered by the Statutory Auditors.
d) Reviewing, with the management, the annual financial statements before submission to the Board of Directors for approval, with particular reference to:
?Matters required to be included in the Director’s Responsibility Statement to be included in the Board’s report in terms of clause (2AA) of section 217 of the Companies Act, 1956
?Changes, if any, in accounting policies and practices and reasons for the same.
?Major accounting entries involving estimates based on exercise of judgment by management.
?Significant adjustments made in the financial statements arising out of audit findings.
?Compliance with listing and other legal requirements relating to financial statements.
?Disclosure of any related party transactions.
?Qualifications in draft audit report.
e) Reviewing with the management, the quarterly financial statements before submission to the Board for approval.
34 35
f) Reviewing, with the management, performance of Statutory and Internal Auditors and adequacy of the internal control systems.
g) Reviewing the adequacy of internal audit function, if any, including the structure of the internal audit department staffing and seniority of the official heading the department, reporting structure coverage and frequency of internal audit.
h) Discussing with internal auditors any significant findings and follow up thereon.
i) Reviewing the findings of any internal investigations by the internal auditors into matters where there is suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting the matter to the Board.
j) Discussing with the Statutory Auditors before the audit commences about the nature and scope of audit as well as have post-audit discussion to ascertain any area of concern.
k) Looking into the reasons for substantial defaults in the payment to the depositors, debenture holders, shareholders (in case of non-payment of declared dividends) and creditors.
l) To review the functioning of the Whistle Blower mechanism.
m) Reviewing, with the management, the statement of uses / application of funds raised through an issue (public issue, rights issue, preferential issue, etc.), the statement of funds utilized for purposes other than those stated in the offer document/prospectus/notice and the report submitted by the monitoring agency monitoring the utilization of proceeds of a public or rights issue, and making appropriate recommendations to the Board to take up steps in this matter.
n) Approval of appointment of CFO (i.e. the whole-time Finance Director or any other person heading the finance or discharging function) after assessing the qualifications, experience & background, etc. of the candidate.
o) Carrying out any other function as is mentioned in the terms of reference of the Audit Committee.
The Audit Committee also have following powers w.r.t. Moser Baer SEZ Developer Limited and Moser Baer Entertainment Limited, the wholly owned subsidiaries of the Company:-
i) To discuss with the auditors periodically about the internal control systems, the scope of audit including the observations of auditors
ii) To review the half yearly and annual financial statements before submission to the Board of Moser Baer SEZ Developer Limited and quarterly and annual financial statements of Moser Baer Entertainment Limited
iii) To ensure compliance of Internal control systems
iv) To investigate into any matters specified above
v) To appoint the Internal Auditor of Moser Baer SEZ Developer Limited and Moser Baer Entertainment Limited, if any
vi) Reviewing with management the statement of uses/ application of funds during a Financial Year of Moser Baer Entertainment Limited
vii) Reviewing the internal audit findings and Internal Audit Plan of Moser Baer SEZ Developer Limited and Moser Baer Entertainment Limited, if any
The Audit Committee has been authorized to mandatorily review the following information:
a) Management discussion and analysis of financial condition and results of operations.
b) Statement of significant related party transactions, submitted by management.
c) Management letters / letters of internal control weaknesses issued by the Statutory Auditors.
d) Internal audit reports relating to internal control weaknesses.
e) The appointment, removal and terms of remuneration of the Chief Internal Auditor.
COMPOSITION, MEETINGS & ATTENDANCE OF THE COMMITTEE
During the period under review, the Audit Committee was re-constituted on November 13, 2013 comprising of Mr. Sanjay Jain as Chairman, Mr. Deepak Puri, Mr. Franck E. Dangeard, Mr. Vineet Sharma and Mr. Bernard Gallus as Members.
The particulars of meetings and attendance by the Members of the Committee during the financial period ended on 31.12.2013 under review are given in the table below:
Members Committee Meetings
held during the period Present in Person Attended through Audio /Video conferencing
Mr. Sanjay Jain (Chairman) 2 2 0
Mr. Deepak Puri 3 2 0
Mr. Franck E. Dangeard* 3 2 0
Mr. Vineet Sharma 2 1 0
Mr. Bernhard Gallus 2 0 2
* Mr. Franck E. Dangeared resigned w.e.f. April 01, 2014.
In addition to the Members of the Audit Committee, these meetings are attended by the CFO and other respective functional heads and Auditors of the Company, wherever necessary, and those executives of the Company who are considered necessary for providing inputs to the Committee.
The Company Secretary acts as the Secretary to the Audit Committee. Mr. John Levack is the permanent invitee to the meetings of the Committee.
The Chairman of the Committee was present at the Annual General Meeting held on Monday, September 30, 2013. The gap between two meetings did not exceed four months.
B. NOMINATION AND REMUNERATION COMMITTEE (FORMERLY KNOWN AS COMPENSATION COMMITTEE)
Moser Baer believes that independent determination of the remuneration policy of the Executive Directors of the Company is a fundamental for ensuring the transparency and hence, the corporate governance practices of the Company. The interests of shareholders and the market are best served through a transparent and readily understandable framework for executive compensation and its costs and benefits. Transparency as to the remuneration policy should be complemented by full and effective disclosure, in keeping with the spirit and intent of the Companies Act, 1956 and Clause 49 of Listing agreement.
(i) Constitution and Composition of the Committee
The compensation committee was renamed as Nomination and remuneration committee in compliance of Companies Act, 2013. The Committee was also re-constituted on 14.05.2014 and the present composition of the Remuneration Committee is as follows:
Name of the Member Status Category
Mr. John Levack Chairman Independent Director
Mr. Bernhard Gallus Member Independent Director
Mr. Sanjay Jain** Member Independent Director
**Mr. Sanjay Jain appointed member w.e.f. May 14, 2014.
No committee meeting held during the financial period ended on December 31, 2013. The Company Secretary acts as the Secretary of the Committee.
(ii) Terms of reference
a) To identify persons who are qualified to become directors
b) Evaluation of director’s performance
c) Determining criteria for independent directors in respect to qualifications, positive attributes and independence of director.
d) Formulate a policy relating to the remuneration for the directors, key managerial personnel and other employees
e) To administer the Employees Stock Option (ESOP) and the Directors’ Stock Option Plan (DSOP) of the Company.”
Meetings attended
34 35
f) Reviewing, with the management, performance of Statutory and Internal Auditors and adequacy of the internal control systems.
g) Reviewing the adequacy of internal audit function, if any, including the structure of the internal audit department staffing and seniority of the official heading the department, reporting structure coverage and frequency of internal audit.
h) Discussing with internal auditors any significant findings and follow up thereon.
i) Reviewing the findings of any internal investigations by the internal auditors into matters where there is suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting the matter to the Board.
j) Discussing with the Statutory Auditors before the audit commences about the nature and scope of audit as well as have post-audit discussion to ascertain any area of concern.
k) Looking into the reasons for substantial defaults in the payment to the depositors, debenture holders, shareholders (in case of non-payment of declared dividends) and creditors.
l) To review the functioning of the Whistle Blower mechanism.
m) Reviewing, with the management, the statement of uses / application of funds raised through an issue (public issue, rights issue, preferential issue, etc.), the statement of funds utilized for purposes other than those stated in the offer document/prospectus/notice and the report submitted by the monitoring agency monitoring the utilization of proceeds of a public or rights issue, and making appropriate recommendations to the Board to take up steps in this matter.
n) Approval of appointment of CFO (i.e. the whole-time Finance Director or any other person heading the finance or discharging function) after assessing the qualifications, experience & background, etc. of the candidate.
o) Carrying out any other function as is mentioned in the terms of reference of the Audit Committee.
The Audit Committee also have following powers w.r.t. Moser Baer SEZ Developer Limited and Moser Baer Entertainment Limited, the wholly owned subsidiaries of the Company:-
i) To discuss with the auditors periodically about the internal control systems, the scope of audit including the observations of auditors
ii) To review the half yearly and annual financial statements before submission to the Board of Moser Baer SEZ Developer Limited and quarterly and annual financial statements of Moser Baer Entertainment Limited
iii) To ensure compliance of Internal control systems
iv) To investigate into any matters specified above
v) To appoint the Internal Auditor of Moser Baer SEZ Developer Limited and Moser Baer Entertainment Limited, if any
vi) Reviewing with management the statement of uses/ application of funds during a Financial Year of Moser Baer Entertainment Limited
vii) Reviewing the internal audit findings and Internal Audit Plan of Moser Baer SEZ Developer Limited and Moser Baer Entertainment Limited, if any
The Audit Committee has been authorized to mandatorily review the following information:
a) Management discussion and analysis of financial condition and results of operations.
b) Statement of significant related party transactions, submitted by management.
c) Management letters / letters of internal control weaknesses issued by the Statutory Auditors.
d) Internal audit reports relating to internal control weaknesses.
e) The appointment, removal and terms of remuneration of the Chief Internal Auditor.
COMPOSITION, MEETINGS & ATTENDANCE OF THE COMMITTEE
During the period under review, the Audit Committee was re-constituted on November 13, 2013 comprising of Mr. Sanjay Jain as Chairman, Mr. Deepak Puri, Mr. Franck E. Dangeard, Mr. Vineet Sharma and Mr. Bernard Gallus as Members.
The particulars of meetings and attendance by the Members of the Committee during the financial period ended on 31.12.2013 under review are given in the table below:
Members Committee Meetings
held during the period Present in Person Attended through Audio /Video conferencing
Mr. Sanjay Jain (Chairman) 2 2 0
Mr. Deepak Puri 3 2 0
Mr. Franck E. Dangeard* 3 2 0
Mr. Vineet Sharma 2 1 0
Mr. Bernhard Gallus 2 0 2
* Mr. Franck E. Dangeared resigned w.e.f. April 01, 2014.
In addition to the Members of the Audit Committee, these meetings are attended by the CFO and other respective functional heads and Auditors of the Company, wherever necessary, and those executives of the Company who are considered necessary for providing inputs to the Committee.
The Company Secretary acts as the Secretary to the Audit Committee. Mr. John Levack is the permanent invitee to the meetings of the Committee.
The Chairman of the Committee was present at the Annual General Meeting held on Monday, September 30, 2013. The gap between two meetings did not exceed four months.
B. NOMINATION AND REMUNERATION COMMITTEE (FORMERLY KNOWN AS COMPENSATION COMMITTEE)
Moser Baer believes that independent determination of the remuneration policy of the Executive Directors of the Company is a fundamental for ensuring the transparency and hence, the corporate governance practices of the Company. The interests of shareholders and the market are best served through a transparent and readily understandable framework for executive compensation and its costs and benefits. Transparency as to the remuneration policy should be complemented by full and effective disclosure, in keeping with the spirit and intent of the Companies Act, 1956 and Clause 49 of Listing agreement.
(i) Constitution and Composition of the Committee
The compensation committee was renamed as Nomination and remuneration committee in compliance of Companies Act, 2013. The Committee was also re-constituted on 14.05.2014 and the present composition of the Remuneration Committee is as follows:
Name of the Member Status Category
Mr. John Levack Chairman Independent Director
Mr. Bernhard Gallus Member Independent Director
Mr. Sanjay Jain** Member Independent Director
**Mr. Sanjay Jain appointed member w.e.f. May 14, 2014.
No committee meeting held during the financial period ended on December 31, 2013. The Company Secretary acts as the Secretary of the Committee.
(ii) Terms of reference
a) To identify persons who are qualified to become directors
b) Evaluation of director’s performance
c) Determining criteria for independent directors in respect to qualifications, positive attributes and independence of director.
d) Formulate a policy relating to the remuneration for the directors, key managerial personnel and other employees
e) To administer the Employees Stock Option (ESOP) and the Directors’ Stock Option Plan (DSOP) of the Company.”
Meetings attended
36 37
(iii) Responsibilities and authorities of the Nomination and Remuneration Committee
a) The Nomination and Remuneration Committee shall review and approve for the Executive Directors of the Company:-
?The annual base salary,
?Annual incentive bonus, if any,
?Any other benefits, compensation or arrangements.
b) The Compensation Committee shall evaluate, and if necessary, amend performance parameters of the Executive Directors;
c) The Compensation Committee may make recommendations to the Board in relation to incentive plans for the Executive Directors; and
d) Administer the ESOP and DSOP schemes of the Company.
(iv) Remuneration Policy
a) Executive Directors
The details of the remuneration paid and payable to Mr. Deepak Puri (Managing Director), Mrs. Nita Puri (Whole Time Director) during the nine months period ended on December 31, 2013 are as follows:
(Amount in ̀ )
Particulars Mr. Deepak Puri, Mrs. Nita Puri,Managing Director Whole Time Director
Salaries, allowances and bonus 87,69,893 27,48,888
Contribution to Provident Fund 1,08,750 1,08,750
Perquisites 10,52,387 3,29,872
TOTAL 99,31,030 31,87,500
Notes
1. The remuneration has been accrued in the books subject to the limits specified in schedule XIII to the Companies
Act, 1956 and/or as approved by the Central Government.
2. As the future liability for gratuity and leave encashment is provided on actuarial valuation basis for the company
as a whole, the amount pertaining to the directors is not ascertainable and therefore not included above.
Service Contracts, Notice Period, Severance Fees
The Company has executed a Service Contract with Mr. Deepak Puri, Managing Director and Mrs. Nita Puri, Whole Time st stDirector whereby both of them have been appointed for a period of five years with effect from 1 September, 2011 and 1
December, 2011 respectively. Both of them are entitled to resign from his/her office at any time upon giving to the
Company at least three calendar months’ written notice. No severance fees shall be payable to either of them.
Managing Director and Whole Time Director are entitled for the performance bonus which is based on the performance of
the Company and their individual performance during the period, as approved by the Nomination and Remuneration
Committee and considered by the Board. No stock options were granted to the Executive Directors of the Company.
b) Non-Executive Directors
All pecuniary relationships or transactions of the Non-Executive Directors with the Company: There is no transaction with
the associates or relatives of the Non-Executive Directors during the financial period under review except in so far
mentioned hereinafter:.
(i) Stock Options
Initially, the shareholders of the Company had passed a resolution to offer the stock options to the Non-Executive Directors
of the Company to the maximum of 4,50,000 Equity Shares and thereafter the shareholders further passed a resolution and
the maximum limit increased to 10,00,000 Equity Shares. Under the terms of approved Directors’ Stock Option Plan
(DSOP), each Non-Executive Director is entitled to receive up to a maximum of 1,00,000 stock options.
Status of stock options accepted under the above mentioned plan is as follows:
Name of Directors No. of stock options granted
Original Bonus options
Mr. John Levack 1,00,000 50,000
Mr. Bernard Gallus 1,00,000 50,000
Mr. Frank E. Dangeard* 1,00,000 -
*Mr. Franck E. Dangeared resigned w.e.f. April 01, 2014
(ii) Commission
Non – Executive Directors are not entitled to any commission during the year under review.
(iii) Sitting Fees
During the period ended on December 31, 2013, the non-executive Directors were paid sitting fees of Rs. 20,000 for each Board Meeting and Rs. 10,000 for each Committee meeting attended by them.
(iv) Service Contracts, Notice Period, Severance Fees
Mr. Bernhard Gallus, Mr. Vineet Sharma and Mr. Sanjay Jain are the Directors liable to retire by rotation. No severance fees will become payable to them if they desire not to continue as Directors of the Company.
Mr. John Levack (non-rotational nominee Director and representative of Electra Partners Mauritius Ltd.) - No severance fees will become payable to him if Electra Partners Mauritius Ltd. withdraws his nomination from the Directorship of the Company.
C. STAKEHOLDERS’ RELATIONSHIP COMMITTEE (FORMERLY KNOWN AS INVESTORS’ GRIEVANCE COMMITTEE)
(i) Composition
In compliance of Companies Act, 2013, the committee was renamed as stakeholders’ relationship committee. The present composition of the Committee and the details of meetings attended by the Directors are given below:
Members No. of meetings attended Date of Meetings
Present in Person Attended throughAudio /Videoconferencing
Mr. John Levack (Chairman) 3 0 May 30, 2013
Mr. Deepak Puri 2 0 August 08, 2013
Mrs. Nita Puri 2 0 November 13, 2013
Mr. Bernhard Gallus 0 2
The Company Secretary acts as the Secretary of the Committee.
(ii) Terms of reference
The functioning and terms of reference of the Committee are to oversee various matters relating to redressal of Shareholders’ and investors’ Grievances as given below:-
i. To consider and resolve the grievances of security holders of the Company
ii. Non- Receipt of transfer of shares
iii. Matters relating to dematerialization/rematerialization of shares;
iv. Non-receipt of Annual Reports;
v. Non-receipt of Dividend;
vi. All other allied matters.
(iii) Meetings
During the period, the Committee held 3 (Three) meetings on May 30, August 8 and November 13, 2013.
Name and designation of the Compliance Officer: Mrs. Minni Katariya, Head Legal and Company Secretary.
36 37
(iii) Responsibilities and authorities of the Nomination and Remuneration Committee
a) The Nomination and Remuneration Committee shall review and approve for the Executive Directors of the Company:-
?The annual base salary,
?Annual incentive bonus, if any,
?Any other benefits, compensation or arrangements.
b) The Compensation Committee shall evaluate, and if necessary, amend performance parameters of the Executive Directors;
c) The Compensation Committee may make recommendations to the Board in relation to incentive plans for the Executive Directors; and
d) Administer the ESOP and DSOP schemes of the Company.
(iv) Remuneration Policy
a) Executive Directors
The details of the remuneration paid and payable to Mr. Deepak Puri (Managing Director), Mrs. Nita Puri (Whole Time Director) during the nine months period ended on December 31, 2013 are as follows:
(Amount in ̀ )
Particulars Mr. Deepak Puri, Mrs. Nita Puri,Managing Director Whole Time Director
Salaries, allowances and bonus 87,69,893 27,48,888
Contribution to Provident Fund 1,08,750 1,08,750
Perquisites 10,52,387 3,29,872
TOTAL 99,31,030 31,87,500
Notes
1. The remuneration has been accrued in the books subject to the limits specified in schedule XIII to the Companies
Act, 1956 and/or as approved by the Central Government.
2. As the future liability for gratuity and leave encashment is provided on actuarial valuation basis for the company
as a whole, the amount pertaining to the directors is not ascertainable and therefore not included above.
Service Contracts, Notice Period, Severance Fees
The Company has executed a Service Contract with Mr. Deepak Puri, Managing Director and Mrs. Nita Puri, Whole Time st stDirector whereby both of them have been appointed for a period of five years with effect from 1 September, 2011 and 1
December, 2011 respectively. Both of them are entitled to resign from his/her office at any time upon giving to the
Company at least three calendar months’ written notice. No severance fees shall be payable to either of them.
Managing Director and Whole Time Director are entitled for the performance bonus which is based on the performance of
the Company and their individual performance during the period, as approved by the Nomination and Remuneration
Committee and considered by the Board. No stock options were granted to the Executive Directors of the Company.
b) Non-Executive Directors
All pecuniary relationships or transactions of the Non-Executive Directors with the Company: There is no transaction with
the associates or relatives of the Non-Executive Directors during the financial period under review except in so far
mentioned hereinafter:.
(i) Stock Options
Initially, the shareholders of the Company had passed a resolution to offer the stock options to the Non-Executive Directors
of the Company to the maximum of 4,50,000 Equity Shares and thereafter the shareholders further passed a resolution and
the maximum limit increased to 10,00,000 Equity Shares. Under the terms of approved Directors’ Stock Option Plan
(DSOP), each Non-Executive Director is entitled to receive up to a maximum of 1,00,000 stock options.
Status of stock options accepted under the above mentioned plan is as follows:
Name of Directors No. of stock options granted
Original Bonus options
Mr. John Levack 1,00,000 50,000
Mr. Bernard Gallus 1,00,000 50,000
Mr. Frank E. Dangeard* 1,00,000 -
*Mr. Franck E. Dangeared resigned w.e.f. April 01, 2014
(ii) Commission
Non – Executive Directors are not entitled to any commission during the year under review.
(iii) Sitting Fees
During the period ended on December 31, 2013, the non-executive Directors were paid sitting fees of Rs. 20,000 for each Board Meeting and Rs. 10,000 for each Committee meeting attended by them.
(iv) Service Contracts, Notice Period, Severance Fees
Mr. Bernhard Gallus, Mr. Vineet Sharma and Mr. Sanjay Jain are the Directors liable to retire by rotation. No severance fees will become payable to them if they desire not to continue as Directors of the Company.
Mr. John Levack (non-rotational nominee Director and representative of Electra Partners Mauritius Ltd.) - No severance fees will become payable to him if Electra Partners Mauritius Ltd. withdraws his nomination from the Directorship of the Company.
C. STAKEHOLDERS’ RELATIONSHIP COMMITTEE (FORMERLY KNOWN AS INVESTORS’ GRIEVANCE COMMITTEE)
(i) Composition
In compliance of Companies Act, 2013, the committee was renamed as stakeholders’ relationship committee. The present composition of the Committee and the details of meetings attended by the Directors are given below:
Members No. of meetings attended Date of Meetings
Present in Person Attended throughAudio /Videoconferencing
Mr. John Levack (Chairman) 3 0 May 30, 2013
Mr. Deepak Puri 2 0 August 08, 2013
Mrs. Nita Puri 2 0 November 13, 2013
Mr. Bernhard Gallus 0 2
The Company Secretary acts as the Secretary of the Committee.
(ii) Terms of reference
The functioning and terms of reference of the Committee are to oversee various matters relating to redressal of Shareholders’ and investors’ Grievances as given below:-
i. To consider and resolve the grievances of security holders of the Company
ii. Non- Receipt of transfer of shares
iii. Matters relating to dematerialization/rematerialization of shares;
iv. Non-receipt of Annual Reports;
v. Non-receipt of Dividend;
vi. All other allied matters.
(iii) Meetings
During the period, the Committee held 3 (Three) meetings on May 30, August 8 and November 13, 2013.
Name and designation of the Compliance Officer: Mrs. Minni Katariya, Head Legal and Company Secretary.
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The transfer / transmission of physical share certificates is approved by the Company Secretary at least once in a fortnight on the basis of recommendations received from the Company’s Registrars and Share Transfer Agent-M/s. MCS Limited.
The investors may lodge their grievances through e-mail at [email protected] or contact the Compliance Officer at the following numbers: -
Telephone numbers : (011) 40594444
Fax numbers : (011) 41635211/ 26911860
Information regarding complaints received from the shareholders through SEBI, NSE and BSE during the period April 1, 2013 to December 31, 2013
Nature of the complaints Received Replied satisfactorily Pending
Relating to transfer, transmission, etc. 1 1 0
Relating to dematerialization 0 0 0
Relating to dividend 3 3 0
Relating to bonus 0 0 0
Relating to Annual Report 0 0 0
Relating to miscellaneous matters 3 3 0
TOTAL 7 7 0
No share was pending for transfer as on December 31, 2013.
D. CORPORATE GOVERNANCE COMMITTEE
(i) Composition
The Committee comprises of three members i.e., Mr. John Levack, Mr. Deepak Puri and Mr. Bernhard Gallus. The Company Secretary acts as the Secretary of the Committee.
(ii) Terms of reference
a) To evaluate the current composition, organization and governance of the Board and its Committees, as well as determine future requirements and make recommendations in this regard to the Board for its approval.
b) To recommend the appointment of such Directors on the Board who are of proven competence and have adequate professional experience.
c) To oversee the evaluation of the Board.
d) To recommend to the Board, Director Nominees for each Committee of the Board.
e) To coordinate and approve Board and Committee meeting schedules.
f) To make regular reports to the Board on the matters listed herein and on such other matters as may be referred to it by the Board from time to time.
g) To advise the Company on the best business practices being followed on corporate governance issues world-wide and to implement those in the Company appropriately.
h) To appoint any outside agency to report on corporate governance matters.
i) To appoint consultants in this regard and to obtain and implement their advise, reports or opinions.
j) To recommend to the Board the governance structure for management of affairs of the Company.
k) To review and re-examine this charter annually and make recommendations to the Board for any proposed changes.
l) To annually review and evaluate its performance.
E. BANKING AND FINANCE COMMITTEE
(i) Composition
Mr. Deepak Puri is the Chairman of the Committee. Other member of the Committee is Mrs. Nita Puri. The Company Secretary acts as the Secretary of the Committee.
(ii) Terms of reference
The Banking and Finance Committee identifies the fund-based and non-fund based requirements of the Company and approves the availing of these facilities from Banks and Financial Institutions, as and when the need arises, within the limits sanctioned by the Board. The Banking and Finance Committee also authorize the officials of the Company to execute the routine documents on behalf of the Company
F . PROJECT DEZIRE COMMITTEE
(i) Composition
During the financial period ended on December 31, 2013, the Project Dezire Committee was re-constituted on August 08, 2013. The present composition of Project Dezire Committee constitutes Mr. Deepak Puri and Mr. John Levack. Mr. Deepak Puri is the Chairman of the Committee. The Company Secretary acts as the Secretary of the Committee.
(ii) Terms of reference
The Project Dezire Committee has the rights, authorities and powers to do all the acts in relation to or ancillary to any of the related matter including but not limited to the following:
a) Approving the offer document and filing the same with any authority or persons as may be required;
b) Approving the issue price and the detailed terms and conditions of the issue of the Securities including determining the conversion price of convertible Securities, the number of equity shares to be allotted, the basis of allocation and allotment of Equity Shares;
c) To affix the Common Seal of the Company on any agreement(s)/ documents as may be required to be executed in connection with the above, in the presence of any Director of the Company and persons authorized who shall sign the same in token thereof;
d) To appoint Lead Managers, Underwriters, Guarantors, Depositories, Custodians, Registrars, Trustees, Bankers, Lawyers, Advisors and all such Agencies as may be involved or concerned in such offerings of Securities and to remunerate them by way of commission, brokerage, fees or the like and also to enter into and execute all such arrangements, agreements, memorandum, documents, etc., with such agencies and to remove and modify the terms of appointment of any such agencies;
e) To issue and allot such number of Equity Shares as may be required to be issued and allotted upon conversion of any Securities or as may be necessary in accordance with the terms of each offering, all such Equity Shares ranking pari-passu with the existing Equity Shares of the Company in all respects, except the right as to dividend which shall be as provided under the terms of the issue and each of the offering documents;
f) Arranging the delivery and execution of all contracts, agreements and all other documents, deeds, and instruments as may be required or desirable in connection with the issue of Securities by the Company;
g) To mortgage and/or create a charge on all or any of the moveable, immoveable or intangible assets of the Company including any subsidiary thereof, on such terms and conditions as may be deemed necessary in order to secure the funds raised by the Company, up to USD 165 million or any other transactions contemplated by the aforementioned resolutions.
h) To pledge or create a lien on all or any of the investments held by the Company including any Subsidiary thereof on such terms and conditions as may be deemed necessary in order to secure the funds raised by the Company, up to USD 165 million.
i) Taking decision to open the issue, decide issue opening and closing dates of each offering;
j) Opening and operating such banks accounts, escrow account and demat accounts as may be required for the transaction;
k) To finalise the terms of the exchange offer, if any to be provided to the existing bond holders and cancel the existing bonds, if required
l) To consider and finalise various options for such restructuring the liability of the Company, including considering repurchase/early redemption of FCCBs through market purchases or tender offers or a combination thereof, including for exchange with existing FCCBs and/or resetting the conversion price the existing FCCBs, subject to applicable law requisite approvals and to enter into the necessary documentation required for such activities.
m) To determine the timing, pricing and all the terms and conditions for the aforesaid purchases or tender offers subject to applicable law;
n) Making all the necessary applications including application for listing of the Equity Shares of the Company on one or more stock exchange(s), applications to RBI, SEBI or any other authority wherever required as per applicable
38 39
The transfer / transmission of physical share certificates is approved by the Company Secretary at least once in a fortnight on the basis of recommendations received from the Company’s Registrars and Share Transfer Agent-M/s. MCS Limited.
The investors may lodge their grievances through e-mail at [email protected] or contact the Compliance Officer at the following numbers: -
Telephone numbers : (011) 40594444
Fax numbers : (011) 41635211/ 26911860
Information regarding complaints received from the shareholders through SEBI, NSE and BSE during the period April 1, 2013 to December 31, 2013
Nature of the complaints Received Replied satisfactorily Pending
Relating to transfer, transmission, etc. 1 1 0
Relating to dematerialization 0 0 0
Relating to dividend 3 3 0
Relating to bonus 0 0 0
Relating to Annual Report 0 0 0
Relating to miscellaneous matters 3 3 0
TOTAL 7 7 0
No share was pending for transfer as on December 31, 2013.
D. CORPORATE GOVERNANCE COMMITTEE
(i) Composition
The Committee comprises of three members i.e., Mr. John Levack, Mr. Deepak Puri and Mr. Bernhard Gallus. The Company Secretary acts as the Secretary of the Committee.
(ii) Terms of reference
a) To evaluate the current composition, organization and governance of the Board and its Committees, as well as determine future requirements and make recommendations in this regard to the Board for its approval.
b) To recommend the appointment of such Directors on the Board who are of proven competence and have adequate professional experience.
c) To oversee the evaluation of the Board.
d) To recommend to the Board, Director Nominees for each Committee of the Board.
e) To coordinate and approve Board and Committee meeting schedules.
f) To make regular reports to the Board on the matters listed herein and on such other matters as may be referred to it by the Board from time to time.
g) To advise the Company on the best business practices being followed on corporate governance issues world-wide and to implement those in the Company appropriately.
h) To appoint any outside agency to report on corporate governance matters.
i) To appoint consultants in this regard and to obtain and implement their advise, reports or opinions.
j) To recommend to the Board the governance structure for management of affairs of the Company.
k) To review and re-examine this charter annually and make recommendations to the Board for any proposed changes.
l) To annually review and evaluate its performance.
E. BANKING AND FINANCE COMMITTEE
(i) Composition
Mr. Deepak Puri is the Chairman of the Committee. Other member of the Committee is Mrs. Nita Puri. The Company Secretary acts as the Secretary of the Committee.
(ii) Terms of reference
The Banking and Finance Committee identifies the fund-based and non-fund based requirements of the Company and approves the availing of these facilities from Banks and Financial Institutions, as and when the need arises, within the limits sanctioned by the Board. The Banking and Finance Committee also authorize the officials of the Company to execute the routine documents on behalf of the Company
F . PROJECT DEZIRE COMMITTEE
(i) Composition
During the financial period ended on December 31, 2013, the Project Dezire Committee was re-constituted on August 08, 2013. The present composition of Project Dezire Committee constitutes Mr. Deepak Puri and Mr. John Levack. Mr. Deepak Puri is the Chairman of the Committee. The Company Secretary acts as the Secretary of the Committee.
(ii) Terms of reference
The Project Dezire Committee has the rights, authorities and powers to do all the acts in relation to or ancillary to any of the related matter including but not limited to the following:
a) Approving the offer document and filing the same with any authority or persons as may be required;
b) Approving the issue price and the detailed terms and conditions of the issue of the Securities including determining the conversion price of convertible Securities, the number of equity shares to be allotted, the basis of allocation and allotment of Equity Shares;
c) To affix the Common Seal of the Company on any agreement(s)/ documents as may be required to be executed in connection with the above, in the presence of any Director of the Company and persons authorized who shall sign the same in token thereof;
d) To appoint Lead Managers, Underwriters, Guarantors, Depositories, Custodians, Registrars, Trustees, Bankers, Lawyers, Advisors and all such Agencies as may be involved or concerned in such offerings of Securities and to remunerate them by way of commission, brokerage, fees or the like and also to enter into and execute all such arrangements, agreements, memorandum, documents, etc., with such agencies and to remove and modify the terms of appointment of any such agencies;
e) To issue and allot such number of Equity Shares as may be required to be issued and allotted upon conversion of any Securities or as may be necessary in accordance with the terms of each offering, all such Equity Shares ranking pari-passu with the existing Equity Shares of the Company in all respects, except the right as to dividend which shall be as provided under the terms of the issue and each of the offering documents;
f) Arranging the delivery and execution of all contracts, agreements and all other documents, deeds, and instruments as may be required or desirable in connection with the issue of Securities by the Company;
g) To mortgage and/or create a charge on all or any of the moveable, immoveable or intangible assets of the Company including any subsidiary thereof, on such terms and conditions as may be deemed necessary in order to secure the funds raised by the Company, up to USD 165 million or any other transactions contemplated by the aforementioned resolutions.
h) To pledge or create a lien on all or any of the investments held by the Company including any Subsidiary thereof on such terms and conditions as may be deemed necessary in order to secure the funds raised by the Company, up to USD 165 million.
i) Taking decision to open the issue, decide issue opening and closing dates of each offering;
j) Opening and operating such banks accounts, escrow account and demat accounts as may be required for the transaction;
k) To finalise the terms of the exchange offer, if any to be provided to the existing bond holders and cancel the existing bonds, if required
l) To consider and finalise various options for such restructuring the liability of the Company, including considering repurchase/early redemption of FCCBs through market purchases or tender offers or a combination thereof, including for exchange with existing FCCBs and/or resetting the conversion price the existing FCCBs, subject to applicable law requisite approvals and to enter into the necessary documentation required for such activities.
m) To determine the timing, pricing and all the terms and conditions for the aforesaid purchases or tender offers subject to applicable law;
n) Making all the necessary applications including application for listing of the Equity Shares of the Company on one or more stock exchange(s), applications to RBI, SEBI or any other authority wherever required as per applicable
40 41
laws for any of the transactions or matters contemplated by the aforementioned resolutions and to execute and to deliver or arrange the delivery of the listing agreement(s) or equivalent documentation to the concerned stock exchange(s) and make the necessary regulatory filings in this regard, if required; and
o) To do all such acts, deeds, matters and things and execute all such other documents, as it may, in its absolute discretion, deem necessary or desirable for the purpose of the transactions or matters and to authorize or delegate all or any of the powers herein above conferred to any or more persons, if needed and to settle all questions, difficulties or doubts that may arise in this regard.
G. CORPORATE SOCIAL RESPONSIBILITY COMMITTEE
(i) Composition
Mr. Deepak Puri is the Chairman of this Committee. The other members of the Committee are Mrs. Nita Puri and Mr. Bernhard Gallus. During the financial period, one meeting was held on August 07, 2013.
(ii) Scope of work and powers of the Committee are as follows:
(a) To interpret the organizational CSR objectives and set up specific goals to be achieved towards these objectives.
(b) To make periodical appraisal of CSR initiatives.
(c) To decide about resource allocation for each of the focus areas from its corpus.
(d) To prepare and place before the Board the CSR Annual Report.
(e) To prepare and lay before the Board ‘the Action Plan’ for the ensuing year.
(f) To set up a Trust, to contribute to the trust such funds as may be required from the overall corpus for CSR activity.
(g) To appoint the Standing Committees and other Committees or sub- Committees, as may be necessary from time to time.
(h) To delegate any or all of its powers to the Chairman of the Board of Directors, other Committees or Sub-Committees duly appointed.
(i) To select representatives/candidates from among the members of the Committee for participation in national and international seminars/conferences, workshops, study tours and training courses. The cost shall be borne by the Committee from the CSR budget. However, in case of the Chairman of the Board of Directors, the cost shall be borne by the Company.
H. FCCB COMMITTEE
During the financial period under review, the Board of Directors re-constituted FCCB Committee on August 08, 2013 to handle, resolve and execute the issues relating to or emerging out of the restructuring/refinancing process of Foreign Currency Convertible Bonds. The members of the FCCB’s Committee are as follows:
The present composition of Committee constitutes Mr. Deepak Puri and Mr. John Levack. Mr. Deepak Puri is the Chairman of the Committee. Company Secretary acts as Secretary to the Committee.
The Committee is authorized to do the following acts:
a. To consider and finalise various options for restructuring/refinancing of the Outstanding Bonds in accordance with applicable law, including but not limited to extending the maturity period of the Outstanding Bonds, amending the terms of the Outstanding Bonds, changing the face value of the Outstanding Bonds, repurchase/ redemption of the Outstanding Bonds and their cancellation and /or exchanging the Outstanding Bonds with one or more tranches of New Bonds (the terms of which will be decided by the committee);
b. To undertake all such actions and make all such payments as may be deemed necessary to give effect to such restructuring options agreed to by the FCCB Committee, subject to applicable law;
c. To finalise and send notices to the Trustee and/or the Outstanding Bondholders;
d. To make application to the Reserve Bank of India and such other authorities as may be required for the restructuring/refinancing of the Outstanding Bonds;
e. To appoint and to ratify the appointment of, if required, the Lead Managers, Underwriters, Guarantors, Depositories, Custodians, Registrars, Trustees, Bankers, Lawyers, Advisors and all such Agencies as may be involved or concerned in such restructuring/refinancing and to remunerate them by way of commission, brokerage, fees or the like and also to enter into and execute all such arrangements, agreements, memorandum, documents, etc., with such agencies and also to seek the listing of such Securities on one or more National and/or International Stock Exchange(s);
f. To finalise and circulate to the Outstanding Bondholders or new investors an offering circular, memorandum, or
any other relevant documents as may be required for the proposed restructuring/refinancing of the Outstanding Bonds;
g. To issue and allot such number of Equity Shares and other securities including FCCBs as may be required to be issued and allotted upon conversion/exchange, in accordance with the terms of the offering. All such Equity Shares shall rank pari passu with the existing Equity Shares of the Company in all respects, except the right as to dividend which shall be as provided under the terms of the issue and in the offering documents;
h. To determine the form, terms and timing of the restructuring/refinancing, including but not limited to the number of new bonds to be allotted, issue price, face value, premium amount, rate of interest, conversion price and period, listings on one or more stock exchanges in India and / or abroad as the Board in its absolute discretion deems fit and to make and accept any modifications in the proposal as may be required by the authorities involved in such issues in India and/or abroad, to do all acts, deeds, matters and things and to settle any questions or difficulties that may arise in regard to the Issue(s);
i. To finalize the allotment of new bonds in respect of the subscriptions received, basis of allotment in case of over-subscription, accept and appropriate the proceeds of the issue;
I. MATERIAL NON LISTED INDIAN SUBSIDIARY COMPANIES
Clause 49 defines a “material non-listed Indian subsidiary” as an unlisted subsidiary, incorporated in India, whose turnover or net worth (i.e. paid up capital and free reserves) exceeds 20% of the consolidated turnover or net worth respectively, of the listed holding company and its subsidiaries in the immediately preceding accounting year.
Moser Baer Solar Limited is the material non-listed Indian subsidiary of the Company. The Company has complied with the requirement of appointing of one of its independent directors Mr. Bernhard Hermann Gallus, on the Board of the above mentioned material non-listed Indian subsidiary. Minutes of the Board Meetings of the unlisted subsidiary companies are placed periodically before the Board of the Company. The Management also periodically reviews the statement of all significant transactions and arrangements entered into by the unlisted subsidiary companies.
4. SECRETARIAL AUDIT
As stipulated by SEBI, secretarial audit carried out on a quarterly basis to reconcile the total admitted capital with National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) and the total issued and listed capital.
5. COMPLIANCE WITH SEBI (PROHIBITION OF INSIDER TRADING) REGULATIONS, 2002
In pursuance of these regulations, the Company has formulated Standing Instructions for the Employees and Directors for thdealing in Shares of the Company and these Standing Instructions were implemented with effect from 9 September, 2002
and duly amended from time to time. Various forms have been designed to receive periodical information from the employees and the Directors of the Company, as required in terms of these regulations. Further, the Trading Window for dealing in shares of the Company has been closed for the Directors and employees of the Company as per the following details: -
Dates of closure of trading window Purpose of closure Date of Board Meeting for considering the reserved matter
Wednesday, May 15, 2013 to Friday, Consideration of un-audited financial Thursday, May 30, 2013May 31, 2013 results for the quarter ended March 31,
2013 and audited financial results forthe year ended on March 31, 2013.
Thursday, July 25, 2013 to Friday, Consideration of the unaudited Thursday, August 08, 2013August 09, 2013 financial results for the quarter ended
on June 30, 2013.
Tuesday, October 29, 2013 to Thursday, Consideration of the Unaudited Wednesday, November 13, 2013November 14, 2013 financial result for the quarter ended
on September 30, 2013.
6. PARTICULARS OF ANNUAL GENERAL MEETINGS AND EXTRAORDINARY GENERAL MEETINGS HELD DURING THE LAST THREE YEARS
General Meeting Date Time Venue
Annual General Meeting September 29, 2011 9.30 A.M. NCUI Convention Centre 3, Khel Gaon Marg,New Delhi - 110016
Annual General Meeting December 14, 2012 9.30 A.M. NCUI Convention Centre 3, Khel Gaon Marg,New Delhi - 110016
Annual General Meeting September 30, 2013 9.30 A.M. FICCI Golden Jubilee Auditorium, FederationHouse, Tansen Marg, New Delhi- 110001
40 41
laws for any of the transactions or matters contemplated by the aforementioned resolutions and to execute and to deliver or arrange the delivery of the listing agreement(s) or equivalent documentation to the concerned stock exchange(s) and make the necessary regulatory filings in this regard, if required; and
o) To do all such acts, deeds, matters and things and execute all such other documents, as it may, in its absolute discretion, deem necessary or desirable for the purpose of the transactions or matters and to authorize or delegate all or any of the powers herein above conferred to any or more persons, if needed and to settle all questions, difficulties or doubts that may arise in this regard.
G. CORPORATE SOCIAL RESPONSIBILITY COMMITTEE
(i) Composition
Mr. Deepak Puri is the Chairman of this Committee. The other members of the Committee are Mrs. Nita Puri and Mr. Bernhard Gallus. During the financial period, one meeting was held on August 07, 2013.
(ii) Scope of work and powers of the Committee are as follows:
(a) To interpret the organizational CSR objectives and set up specific goals to be achieved towards these objectives.
(b) To make periodical appraisal of CSR initiatives.
(c) To decide about resource allocation for each of the focus areas from its corpus.
(d) To prepare and place before the Board the CSR Annual Report.
(e) To prepare and lay before the Board ‘the Action Plan’ for the ensuing year.
(f) To set up a Trust, to contribute to the trust such funds as may be required from the overall corpus for CSR activity.
(g) To appoint the Standing Committees and other Committees or sub- Committees, as may be necessary from time to time.
(h) To delegate any or all of its powers to the Chairman of the Board of Directors, other Committees or Sub-Committees duly appointed.
(i) To select representatives/candidates from among the members of the Committee for participation in national and international seminars/conferences, workshops, study tours and training courses. The cost shall be borne by the Committee from the CSR budget. However, in case of the Chairman of the Board of Directors, the cost shall be borne by the Company.
H. FCCB COMMITTEE
During the financial period under review, the Board of Directors re-constituted FCCB Committee on August 08, 2013 to handle, resolve and execute the issues relating to or emerging out of the restructuring/refinancing process of Foreign Currency Convertible Bonds. The members of the FCCB’s Committee are as follows:
The present composition of Committee constitutes Mr. Deepak Puri and Mr. John Levack. Mr. Deepak Puri is the Chairman of the Committee. Company Secretary acts as Secretary to the Committee.
The Committee is authorized to do the following acts:
a. To consider and finalise various options for restructuring/refinancing of the Outstanding Bonds in accordance with applicable law, including but not limited to extending the maturity period of the Outstanding Bonds, amending the terms of the Outstanding Bonds, changing the face value of the Outstanding Bonds, repurchase/ redemption of the Outstanding Bonds and their cancellation and /or exchanging the Outstanding Bonds with one or more tranches of New Bonds (the terms of which will be decided by the committee);
b. To undertake all such actions and make all such payments as may be deemed necessary to give effect to such restructuring options agreed to by the FCCB Committee, subject to applicable law;
c. To finalise and send notices to the Trustee and/or the Outstanding Bondholders;
d. To make application to the Reserve Bank of India and such other authorities as may be required for the restructuring/refinancing of the Outstanding Bonds;
e. To appoint and to ratify the appointment of, if required, the Lead Managers, Underwriters, Guarantors, Depositories, Custodians, Registrars, Trustees, Bankers, Lawyers, Advisors and all such Agencies as may be involved or concerned in such restructuring/refinancing and to remunerate them by way of commission, brokerage, fees or the like and also to enter into and execute all such arrangements, agreements, memorandum, documents, etc., with such agencies and also to seek the listing of such Securities on one or more National and/or International Stock Exchange(s);
f. To finalise and circulate to the Outstanding Bondholders or new investors an offering circular, memorandum, or
any other relevant documents as may be required for the proposed restructuring/refinancing of the Outstanding Bonds;
g. To issue and allot such number of Equity Shares and other securities including FCCBs as may be required to be issued and allotted upon conversion/exchange, in accordance with the terms of the offering. All such Equity Shares shall rank pari passu with the existing Equity Shares of the Company in all respects, except the right as to dividend which shall be as provided under the terms of the issue and in the offering documents;
h. To determine the form, terms and timing of the restructuring/refinancing, including but not limited to the number of new bonds to be allotted, issue price, face value, premium amount, rate of interest, conversion price and period, listings on one or more stock exchanges in India and / or abroad as the Board in its absolute discretion deems fit and to make and accept any modifications in the proposal as may be required by the authorities involved in such issues in India and/or abroad, to do all acts, deeds, matters and things and to settle any questions or difficulties that may arise in regard to the Issue(s);
i. To finalize the allotment of new bonds in respect of the subscriptions received, basis of allotment in case of over-subscription, accept and appropriate the proceeds of the issue;
I. MATERIAL NON LISTED INDIAN SUBSIDIARY COMPANIES
Clause 49 defines a “material non-listed Indian subsidiary” as an unlisted subsidiary, incorporated in India, whose turnover or net worth (i.e. paid up capital and free reserves) exceeds 20% of the consolidated turnover or net worth respectively, of the listed holding company and its subsidiaries in the immediately preceding accounting year.
Moser Baer Solar Limited is the material non-listed Indian subsidiary of the Company. The Company has complied with the requirement of appointing of one of its independent directors Mr. Bernhard Hermann Gallus, on the Board of the above mentioned material non-listed Indian subsidiary. Minutes of the Board Meetings of the unlisted subsidiary companies are placed periodically before the Board of the Company. The Management also periodically reviews the statement of all significant transactions and arrangements entered into by the unlisted subsidiary companies.
4. SECRETARIAL AUDIT
As stipulated by SEBI, secretarial audit carried out on a quarterly basis to reconcile the total admitted capital with National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) and the total issued and listed capital.
5. COMPLIANCE WITH SEBI (PROHIBITION OF INSIDER TRADING) REGULATIONS, 2002
In pursuance of these regulations, the Company has formulated Standing Instructions for the Employees and Directors for thdealing in Shares of the Company and these Standing Instructions were implemented with effect from 9 September, 2002
and duly amended from time to time. Various forms have been designed to receive periodical information from the employees and the Directors of the Company, as required in terms of these regulations. Further, the Trading Window for dealing in shares of the Company has been closed for the Directors and employees of the Company as per the following details: -
Dates of closure of trading window Purpose of closure Date of Board Meeting for considering the reserved matter
Wednesday, May 15, 2013 to Friday, Consideration of un-audited financial Thursday, May 30, 2013May 31, 2013 results for the quarter ended March 31,
2013 and audited financial results forthe year ended on March 31, 2013.
Thursday, July 25, 2013 to Friday, Consideration of the unaudited Thursday, August 08, 2013August 09, 2013 financial results for the quarter ended
on June 30, 2013.
Tuesday, October 29, 2013 to Thursday, Consideration of the Unaudited Wednesday, November 13, 2013November 14, 2013 financial result for the quarter ended
on September 30, 2013.
6. PARTICULARS OF ANNUAL GENERAL MEETINGS AND EXTRAORDINARY GENERAL MEETINGS HELD DURING THE LAST THREE YEARS
General Meeting Date Time Venue
Annual General Meeting September 29, 2011 9.30 A.M. NCUI Convention Centre 3, Khel Gaon Marg,New Delhi - 110016
Annual General Meeting December 14, 2012 9.30 A.M. NCUI Convention Centre 3, Khel Gaon Marg,New Delhi - 110016
Annual General Meeting September 30, 2013 9.30 A.M. FICCI Golden Jubilee Auditorium, FederationHouse, Tansen Marg, New Delhi- 110001
42 43
Details of Special Resolution Passed in previous three Annual General Meetings:
Date of AGM Special Resolutions
September 29, 2011 a) To consider the matter relating to re-appointment of Mr. Deepak Puri as the Managing Director of the company for the period of 5 years.
b) To consider the matter relating to re-appointment of Mrs. Nita Puri as the Whole time Director of the company for the period of 5 years.
c) To consider the matter relating to re-appointment of Mr. Ratul Puri as the Executive Director of the company for the period of 5 years.
d) To consider the matter relating to the reclassification and increase in authorized share capital of the company.
e) To consider the matter relating to the Alteration in Memorandum and Articles of Association of the Company.
f) To consider the matter relating to issuance of financial instruments (including FCCB’s) convertible into or linked to equity shares.
g) To consider the matter relating to entering into a Consulting Agreement with HARCOURT, a company incorporated under the laws of France, and represented by its Managing Partner, Mr. Frank E. Dangeard, and Director of the Company.
December 14, 2012 a) To consider the matter relating to entering into a Consulting Agreement with HARCOURT, a company incorporated under the laws of France, and represented by its Managing Partner, Mr. Frank E. Dangeard, Director of the Company.
September 30, 2013 a) To consider the matter relating to entering into a Consulting Agreement with HARCOURT, a company incorporated under the laws of France, and represented by its Managing Partner, Mr. Frank E. Dangeard, Director of the Company.
Postal Ballots
In accordance with Section 192A and other applicable provisions of the Companies Act, 1956 and the Companies (Passing of Resolution through Postal Ballot) Rules, 2011, Special Resolutions were passed through Postal Ballots on May 20, 2013. The details are as given below:
Special Resolutions passed through Postal Ballot on May 20, 2013
1. To approve, ratify and confirm the corporate debt restructuring scheme in relation to the Company’s debt.
2. Issue of Equity Shares on Preferential Basis to the Promoters.
(a) Scrutinizer
The Board appointed Mr. D P Gupta, a Practicing Company Secretary, as the Scrutinizer for conducting the postal ballot process in a fair and transparent manner. Mr. D P Gupta conducted the process and submitted his report to the Chairman.
(b) Procedure followed
i. The postal ballot notice and other related documents were dispatched to the Members through post or/and e-mail.
ii. A calendar of events along with Board Resolution was submitted with the Registrar of Companies, NCT of Delhi.
iii. The result of the postal ballot was announced by the Company Secretary, at the registered office of the Company and was posted on the website of the Company.
7. DISCLOSURES
a) The Company has no material significant transaction with its related parties that may have a potential conflict with the interest of the Company. The details of transactions between the Company and the related parties are given for information under note 40 of the Balance Sheet as at December 31, 2013. Only consultancy services from Harcourt, an entity where Mr. Frank E Dangeard, a non executive independent director is interested, has been taken amounting to Euro 20,000 during the period. However, Mr. Frank E. Dangeared resigned from the Company w.e.f. April 01, 2014.
b) Disclosure of accounting treatment, if different, from that prescribed in accounting standards with explanation –Not applicable.
c) Details of non-compliance by the Company, penalties, strictures imposed by Stock Exchange or SEBI or any statutory authority, on any matter related to capital markets, during the last three years- NIL
d) Mr. Deepak Puri, Managing Director and Mrs. Nita Puri, Whole Time Director are related to each other. Mrs. Nita Puri, Whole Time Director is wife of Mr. Deepak Puri, Managing Director.
8. MEANS OF COMMUNICATION
a) The Company ensures that its quarterly and annual financial results are sent to the concerned Stock Exchanges immediately after the same have been considered and taken on record by the Board of Directors. The Company also ensures that its quarterly financial results are also published in any of the following newspapers:
(i) The Economic Times
(ii) Business Standard
(iii) The Times of India
(iv) The Financial Times
(v) The Financial Express
(vi) The Pioneer
(vii) Mumbai Mirror
(viii) Hindu Business Line
(ix) Hindustan Hindi
(x) Veer Arjun
(xi) Navbharat Times.
(xii) Jan Satta
The details of the publications of the financial results in the period under review are as under : Publication Date
Audited financial results for the quarter and year ended on March 31, 2013 June 01, 2013
Unaudited financial results for the first quarter ended June 30, 2013 August 10, 2013
Unaudited financial results for the second quarter and half year ended on September 30, 2013 November 16, 2013
Unaudited financial results for the third quarter and year ended December 31, 2013 March 2, 2014
b) The Company also ensures that these results are promptly and prominently displayed on the Company’s website:- www.moserbaer.in
c) The Company also complies with SEBI regulations regarding filing of its financial results.
d) The Company’s official news releases are also displayed on the Company’s web site.
e) Management Discussion and Analysis Report (MD & A) is a part of the Annual Report of the Company for the period ending on December 31, 2013.
9. CODE OF CONDUCT
As per Clause 49 of the listing agreement, the company has formulated a Code of Conduct each for the Directors and Senior Management and the same have been placed on the website of the Company. The declaration of the Managing Director regarding the compliance with the Codes of Conduct by Directors and the senior managerial personnel is given in the Annual Report.
10. GENERAL SHAREHOLDER INFORMATION
sta) 31 ANNUAL GENERAL MEETING
Date : July 4th, 2014
Time : 09:30 A.M.
Venue : FICCI Golden Jubilee Auditorium, Federation House, Tansen Marg,
New Delhi 110001
42 43
Details of Special Resolution Passed in previous three Annual General Meetings:
Date of AGM Special Resolutions
September 29, 2011 a) To consider the matter relating to re-appointment of Mr. Deepak Puri as the Managing Director of the company for the period of 5 years.
b) To consider the matter relating to re-appointment of Mrs. Nita Puri as the Whole time Director of the company for the period of 5 years.
c) To consider the matter relating to re-appointment of Mr. Ratul Puri as the Executive Director of the company for the period of 5 years.
d) To consider the matter relating to the reclassification and increase in authorized share capital of the company.
e) To consider the matter relating to the Alteration in Memorandum and Articles of Association of the Company.
f) To consider the matter relating to issuance of financial instruments (including FCCB’s) convertible into or linked to equity shares.
g) To consider the matter relating to entering into a Consulting Agreement with HARCOURT, a company incorporated under the laws of France, and represented by its Managing Partner, Mr. Frank E. Dangeard, and Director of the Company.
December 14, 2012 a) To consider the matter relating to entering into a Consulting Agreement with HARCOURT, a company incorporated under the laws of France, and represented by its Managing Partner, Mr. Frank E. Dangeard, Director of the Company.
September 30, 2013 a) To consider the matter relating to entering into a Consulting Agreement with HARCOURT, a company incorporated under the laws of France, and represented by its Managing Partner, Mr. Frank E. Dangeard, Director of the Company.
Postal Ballots
In accordance with Section 192A and other applicable provisions of the Companies Act, 1956 and the Companies (Passing of Resolution through Postal Ballot) Rules, 2011, Special Resolutions were passed through Postal Ballots on May 20, 2013. The details are as given below:
Special Resolutions passed through Postal Ballot on May 20, 2013
1. To approve, ratify and confirm the corporate debt restructuring scheme in relation to the Company’s debt.
2. Issue of Equity Shares on Preferential Basis to the Promoters.
(a) Scrutinizer
The Board appointed Mr. D P Gupta, a Practicing Company Secretary, as the Scrutinizer for conducting the postal ballot process in a fair and transparent manner. Mr. D P Gupta conducted the process and submitted his report to the Chairman.
(b) Procedure followed
i. The postal ballot notice and other related documents were dispatched to the Members through post or/and e-mail.
ii. A calendar of events along with Board Resolution was submitted with the Registrar of Companies, NCT of Delhi.
iii. The result of the postal ballot was announced by the Company Secretary, at the registered office of the Company and was posted on the website of the Company.
7. DISCLOSURES
a) The Company has no material significant transaction with its related parties that may have a potential conflict with the interest of the Company. The details of transactions between the Company and the related parties are given for information under note 40 of the Balance Sheet as at December 31, 2013. Only consultancy services from Harcourt, an entity where Mr. Frank E Dangeard, a non executive independent director is interested, has been taken amounting to Euro 20,000 during the period. However, Mr. Frank E. Dangeared resigned from the Company w.e.f. April 01, 2014.
b) Disclosure of accounting treatment, if different, from that prescribed in accounting standards with explanation –Not applicable.
c) Details of non-compliance by the Company, penalties, strictures imposed by Stock Exchange or SEBI or any statutory authority, on any matter related to capital markets, during the last three years- NIL
d) Mr. Deepak Puri, Managing Director and Mrs. Nita Puri, Whole Time Director are related to each other. Mrs. Nita Puri, Whole Time Director is wife of Mr. Deepak Puri, Managing Director.
8. MEANS OF COMMUNICATION
a) The Company ensures that its quarterly and annual financial results are sent to the concerned Stock Exchanges immediately after the same have been considered and taken on record by the Board of Directors. The Company also ensures that its quarterly financial results are also published in any of the following newspapers:
(i) The Economic Times
(ii) Business Standard
(iii) The Times of India
(iv) The Financial Times
(v) The Financial Express
(vi) The Pioneer
(vii) Mumbai Mirror
(viii) Hindu Business Line
(ix) Hindustan Hindi
(x) Veer Arjun
(xi) Navbharat Times.
(xii) Jan Satta
The details of the publications of the financial results in the period under review are as under : Publication Date
Audited financial results for the quarter and year ended on March 31, 2013 June 01, 2013
Unaudited financial results for the first quarter ended June 30, 2013 August 10, 2013
Unaudited financial results for the second quarter and half year ended on September 30, 2013 November 16, 2013
Unaudited financial results for the third quarter and year ended December 31, 2013 March 2, 2014
b) The Company also ensures that these results are promptly and prominently displayed on the Company’s website:- www.moserbaer.in
c) The Company also complies with SEBI regulations regarding filing of its financial results.
d) The Company’s official news releases are also displayed on the Company’s web site.
e) Management Discussion and Analysis Report (MD & A) is a part of the Annual Report of the Company for the period ending on December 31, 2013.
9. CODE OF CONDUCT
As per Clause 49 of the listing agreement, the company has formulated a Code of Conduct each for the Directors and Senior Management and the same have been placed on the website of the Company. The declaration of the Managing Director regarding the compliance with the Codes of Conduct by Directors and the senior managerial personnel is given in the Annual Report.
10. GENERAL SHAREHOLDER INFORMATION
sta) 31 ANNUAL GENERAL MEETING
Date : July 4th, 2014
Time : 09:30 A.M.
Venue : FICCI Golden Jubilee Auditorium, Federation House, Tansen Marg,
New Delhi 110001
44 45
b) FINANCIAL CALENDAR : 2014-15
For the financial year 2014-15, results will be announced by:
First Quarter Results May 14, 2014
Second Quarter and Half yearly Results August 14, 2014
Third Quarter Results November 13, 2014
Fourth Quarter and Annual Results February 28, 2015
nd thc) BOOK CLOSURE : 2 July 2014 to 4 July, 2014
d) LISTING
The Equity Shares of the Company are listed at the following Stock Exchanges:
Sl. No. Name & Address of the Stock Exchange Stock Code
1 Mumbai Stock Exchange Limited 517140Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai- 400 001
2 National Stock Exchange of India Limited MOSERBAERExchange Plaza’, Bandra – Kurla Complex, Bandra (East), Mumbai- 400 051
3 ISIN allotted by Depositories (Company ID Number) INE739A01015
The Annual Listing Fees for the listed equity shares of the Company, pertaining to the year 2014-15 have been paid.
e) DETAILS OF SHAREHOLDING
Details of shareholding as on December 31, 2013
Top Ten Shareholder as on December 31, 2013 are as follows:-
S. No Name of the Shareholder No. of Shares Percentage of Shares
1. Mr. Deepak Puri 53,013,857 26.73
2. Electra Partners Mauritius Ltd. 99,60,345 5.02
3. Deepak Puri (Huf) 4,406,284 2.22
4. Mario Oscar Francis Lobo 25,25,999 1.27
5. Abhinav Bhargava 8,00,000 0.40
6. Vandana Bhargava 8,00,000 0.40
7. Sunflower Broking Private Limited 784959 0.40
8. Reena Deepak Partani 7,00,000 0.35
9. Bonanza Portfolio Ltd 538136 0.27
10. Rust Exim Private Limited 5,00,000 0.25
f) STOCK PRICE DATA
Stock Market Data at BSE and NSE for the period April 1, 2013 to December 31, 2013
Monthly high and low quotations of shares traded at The Stock Exchange, Mumbai (BSE) and National Stock Exchange Ltd. (NSE) are as follows: -
Months NSE BSE
Highest Lowest Highest Lowest
April, 2013 5.40 4.40 5.39 4.47
May, 2013 5.20 4.15 5.15 4.08
June, 2013 4.20 3.50 4.25 3.50
July, 2013 4.45 3.05 4.42 3.00
August, 2013 3.35 2.30 3.25 2.34
September, 2013 3.05 2.60 3.05 2.60
October, 2013 3.70 2.65 3.68 2.66
November, 2013 3.50 2.80 3.57 2.83
December, 2013 3.45 2.90 3.45 2.84
g) STOCK PERFORMANCE IN COMPARISON TO NSE INDEX (S&P CNX NIFTY) AND SENSEX AT BSE:-
h) DISTRIBUTION OF SHAREHOLDING AS ON DECEMBER 31, 2013
No. of EquityShares held shareholders shareholders shares shares
1-500 100187 77.4536 13854447 6.9864
501-1000 12842 9.9280 10665187 5.3781
1001-2000 7272 5.6219 11365871 5.7315
2001-3000 2774 2.1446 7219997 3.6408
3001-4000 1308 1.0112 4771237 2.4060
4001-5000 1266 0.9787 6070344 3.0611
5001 to 10000 2041 1.5779 15313885 7.7223
10001 to 50000 1408 1.0885 29604998 14.9289
50001 to 100000 166 0.1283 11971841 6.0371
100001 & above 87 0.0673 87468297 44.1077
Total 129351 100.00 19,83,06,104 100.00
i) REGISTRAR AND SHARE TRANSFER AGENTS
The share transfer requests received in physical form by the Company or the Company’s Registrar and Transfer Agent are registered within a period of 15 days from the date of receipt. Requests for dematerialization received from the shareholders are effected within an average period of 7 days.
M/s. MCS Limited is the Registrar & Share Transfer Agent of the Company and its office is located at F- 65, Ist Floor, Okhla Industrial Area, Phase- I, New Delhi – 110 020. Contact Person is Mr. Anirudh Mitra. He can be contacted at the following numbers:-
Phone numbers: (011) 41406149/ 41406151/ 41406152/ 41709885/ 41609386
Fax number: (011) 41709881 E-mail: [email protected]
j) SHARE TRANSFER SYSTEM
The application for transfer, transmission and transposition of shares are received by the Company at its registered office or at the office of Registrars and Share Transfer Agent- M/s. MCS Limited.
Following is the procedure of transfer of physical share certificates:-
i) Entry of share certificate details and particulars of the transferee in the computer on receipt thereof in the office.
ii) Scrutiny of transfer deeds.
iii) Tallying of transferor’s signature with the specimen signature available with the Registrar and Share Transfer Agent.
iv) Data entry of transfer deeds.
v) Preparation of objection memos and notices in respect of un-transferred shares.
No. of %age of No. of %age of
NSE
BSE
NIFTY
120
100
80
60
40
20
0
Apr,13 May,13 Jun,13 Jul,13 Aug,13 Sept,13 Oct,13 Nov,13 Dec,13
44 45
b) FINANCIAL CALENDAR : 2014-15
For the financial year 2014-15, results will be announced by:
First Quarter Results May 14, 2014
Second Quarter and Half yearly Results August 14, 2014
Third Quarter Results November 13, 2014
Fourth Quarter and Annual Results February 28, 2015
nd thc) BOOK CLOSURE : 2 July 2014 to 4 July, 2014
d) LISTING
The Equity Shares of the Company are listed at the following Stock Exchanges:
Sl. No. Name & Address of the Stock Exchange Stock Code
1 Mumbai Stock Exchange Limited 517140Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai- 400 001
2 National Stock Exchange of India Limited MOSERBAERExchange Plaza’, Bandra – Kurla Complex, Bandra (East), Mumbai- 400 051
3 ISIN allotted by Depositories (Company ID Number) INE739A01015
The Annual Listing Fees for the listed equity shares of the Company, pertaining to the year 2014-15 have been paid.
e) DETAILS OF SHAREHOLDING
Details of shareholding as on December 31, 2013
Top Ten Shareholder as on December 31, 2013 are as follows:-
S. No Name of the Shareholder No. of Shares Percentage of Shares
1. Mr. Deepak Puri 53,013,857 26.73
2. Electra Partners Mauritius Ltd. 99,60,345 5.02
3. Deepak Puri (Huf) 4,406,284 2.22
4. Mario Oscar Francis Lobo 25,25,999 1.27
5. Abhinav Bhargava 8,00,000 0.40
6. Vandana Bhargava 8,00,000 0.40
7. Sunflower Broking Private Limited 784959 0.40
8. Reena Deepak Partani 7,00,000 0.35
9. Bonanza Portfolio Ltd 538136 0.27
10. Rust Exim Private Limited 5,00,000 0.25
f) STOCK PRICE DATA
Stock Market Data at BSE and NSE for the period April 1, 2013 to December 31, 2013
Monthly high and low quotations of shares traded at The Stock Exchange, Mumbai (BSE) and National Stock Exchange Ltd. (NSE) are as follows: -
Months NSE BSE
Highest Lowest Highest Lowest
April, 2013 5.40 4.40 5.39 4.47
May, 2013 5.20 4.15 5.15 4.08
June, 2013 4.20 3.50 4.25 3.50
July, 2013 4.45 3.05 4.42 3.00
August, 2013 3.35 2.30 3.25 2.34
September, 2013 3.05 2.60 3.05 2.60
October, 2013 3.70 2.65 3.68 2.66
November, 2013 3.50 2.80 3.57 2.83
December, 2013 3.45 2.90 3.45 2.84
g) STOCK PERFORMANCE IN COMPARISON TO NSE INDEX (S&P CNX NIFTY) AND SENSEX AT BSE:-
h) DISTRIBUTION OF SHAREHOLDING AS ON DECEMBER 31, 2013
No. of EquityShares held shareholders shareholders shares shares
1-500 100187 77.4536 13854447 6.9864
501-1000 12842 9.9280 10665187 5.3781
1001-2000 7272 5.6219 11365871 5.7315
2001-3000 2774 2.1446 7219997 3.6408
3001-4000 1308 1.0112 4771237 2.4060
4001-5000 1266 0.9787 6070344 3.0611
5001 to 10000 2041 1.5779 15313885 7.7223
10001 to 50000 1408 1.0885 29604998 14.9289
50001 to 100000 166 0.1283 11971841 6.0371
100001 & above 87 0.0673 87468297 44.1077
Total 129351 100.00 19,83,06,104 100.00
i) REGISTRAR AND SHARE TRANSFER AGENTS
The share transfer requests received in physical form by the Company or the Company’s Registrar and Transfer Agent are registered within a period of 15 days from the date of receipt. Requests for dematerialization received from the shareholders are effected within an average period of 7 days.
M/s. MCS Limited is the Registrar & Share Transfer Agent of the Company and its office is located at F- 65, Ist Floor, Okhla Industrial Area, Phase- I, New Delhi – 110 020. Contact Person is Mr. Anirudh Mitra. He can be contacted at the following numbers:-
Phone numbers: (011) 41406149/ 41406151/ 41406152/ 41709885/ 41609386
Fax number: (011) 41709881 E-mail: [email protected]
j) SHARE TRANSFER SYSTEM
The application for transfer, transmission and transposition of shares are received by the Company at its registered office or at the office of Registrars and Share Transfer Agent- M/s. MCS Limited.
Following is the procedure of transfer of physical share certificates:-
i) Entry of share certificate details and particulars of the transferee in the computer on receipt thereof in the office.
ii) Scrutiny of transfer deeds.
iii) Tallying of transferor’s signature with the specimen signature available with the Registrar and Share Transfer Agent.
iv) Data entry of transfer deeds.
v) Preparation of objection memos and notices in respect of un-transferred shares.
No. of %age of No. of %age of
NSE
BSE
NIFTY
120
100
80
60
40
20
0
Apr,13 May,13 Jun,13 Jul,13 Aug,13 Sept,13 Oct,13 Nov,13 Dec,13
46 47
vi) Generation of checklist for valid transfer deeds.
vii) Correction of data in the computer system on the basis of changes marked in the checklist.
viii) Recording of transfer of shares in the computer system.
ix) Endorsement and signatures on the reverse side of the share certificates.
x) Generation of covering letters for the transferred share certificates and dispatch of transferred share certificates, objection memos and notices by registered post.
Following is the procedure for dematerialization of shares –
i) Entry of the share certificates and the dematerialization request form in the computer.
ii) Scrutiny of the share certificates and the dematerialization request form in the computer.
iii) Tallying of signature of the shareholder on the dematerialization request form with the specimen signature available with the Registrar and Share Transfer Agent.
iv) Data entry of dematerialization request forms.
v) Generation of checklist.
vi) Change of shares from physical to dematerialized mode.
vii) Send confirmation to NSDL and CDS (I) L.
k) DEMATERIALISATION OF SHARES AND LIQUIDITY
The Equity Shares of the Company are actively traded at major Stock Exchanges in dematerialized mode. As on December 31, 2013 99.52% of the shares were held in dematerialized mode by 94.81% of the total shareholders of the Company.
l) Public issue, right issue, preferential issue and GDR/ADR etc.:
Pursuant to Corporate Debt Restructuring Scheme, the Company allotted 3,00,00,000 (Three Crores) Equity Shares of ` 10/- each on preferential basis to Mr. Deeepak Puri during the year under review and 1,00,00,000
thequity shares were alloted on 28 February, 2014.
The Company has not issued any Global Depository Receipt / American Depository Receipt / Warrant or any convertible instrument, which is likely to have an impact on the Company’s equity.
m) LOCATION OF PLANTS
i) 66, NSEZ, Noida, District- Gautam Budh Nagar U.P.
ii) A-164, Sector 80 Noida- II, Distt. Gautam Budh Nagar U.P.
iii) 66, Udyog Vihar Industrial Area, Greater Noida, U.P.
n) CONVERTIBLE SECURITIES
As on December 31, 2013, no convertible securities including Global Depositary Receipts were outstanding for conversion into an equal number of Equity Shares.
o) ADDRESS FOR INVESTOR CORRESPONDENCE
(i) Registrar and Share Transfer Agent MCS Limited (All correspondence regarding transfer and F- 65, Ist Floor, Okhla Industrial Area, Phase- I, dematerialization of share certificates) New Delhi – 110 020
Phone No.: 011-41406149/ 41406151/ 41406152/41709885/Fax No.: 011-4170988E-mail: [email protected]
(ii) Company(For any other information) Company SecretaryMoser Baer India Limited43-B, Okhla Industrial Estate, New Delhi 110020Phone No.: 011-40594444Fax No.: 011-41635211/26911860E-mail: [email protected]
11. OTHER INFORMATION
a. In terms of the provisions of Section 205C of the Companies Act, 1956, unclaimed equity dividend for the year 1995-96, 1996-97, 1997-98 , 1998-99, 1999-2000, 2000-2001, 2001-02, 2002-03, 2003-04 , 2004-05 and 2005-06 has been transferred to the Investor Education and Protection Fund.
b. The Company shall transfer the amount remaining unpaid in its dividend account for the year 2006-07 to the Investor Education and Protection Fund on/before 20th September, 2014.
c. A brief resume as required under this clause of the Directors seeking reappointment has been provided in the Notice calling the Annual General Meeting
11. ADOPTION OF NEW CORPORATE GOVERNANCE CLAUSE
Compliance with mandatory and non-mandatory list of items:-
Your Company ensures that it complies with all the mandatory list of items mentioned in the corporate governance clause. It will endeavor, in future, to comply with the following non-mandatory list of items provided in the corporate governance clause; wherever applicable
1. The Chairman of the Board
The Chairman of the Company is an Executive Director thus, the entitlement to maintain Chairman’s office at the Company’s expense and further reimbursement of expenses incurred in performance of his duties is not applicable to the Company.
2. Nomination and Remuneration Committee
The Board has constituted a Nomination and Remuneration Committee of the Company comprising Independent Directors for determining remuneration packages (including any other compensation) for Executive Directors.
3. Shareholders Rights
The Company publishes its quarterly results in the leading newspapers and regularly uploads the results and the financial statements and key events on its website. However, the Company does not send the declaration of the half yearly financial performance or a summary of significant events to each shareholder of the Company.
4. Postal Ballot
The company believes that the shareholders, who are unable to attend the meetings, do also vote on matters required the approval of the shareholders of the Company. As elaborately mentioned above, certain matters reserved for postal ballot as per listing agreement are passed through vote by postal ballot. During the period under review, resolutions were passed through Postal Ballot as per details given in this section.
5. Audit Qualifications
The report of Statutory Auditors’ of the Company is attached to the financial statements of the Company. The Company has always strived and achieved the regime of unqualified Auditors Report.
6. Training of Board Members
The Company endeavors to organize training programme for its Board members.
7. Mechanism for evaluating Non-Executive Board members.
The performance evaluation of Non-Executive Directors will be done in the due course of time.
8. Whistle Blower Policy:
The Company has a code of conduct for its Directors and senior managerial personnel which allow them to report any matter relating to unethical conduct or conflict of interest to their immediate supervisor. Further, the Company also has a formal Whistle Blower Policy to report to management instances of any unethical behavior, moral turpitude, financial misappropriation, Actual/suspected/anticipated fraud or violation of Company’s Code of Conduct.
COMPLIANCE WITH THE CODE OF ETHICS
Good corporate governance ultimately requires people of integrity. A code of conduct is an effective way to guide the behavior of directors and Senior Management Personnel to demonstrate the commitment of the company to ethical practices. The Code has been circulated to all the members of the Board and Senior Management and the compliance of the same has been affirmed by them. A declaration signed by the Managing Director to this effect is given below:
CERTIFICATE FOR COMPLIANCE WITH THE CODE OF ETHICS
This is certify that, to the best of my knowledge and belief, for the financial year ended on December 31, 2013, all the Board members and Senior Management Personnel have affirmed compliance with the code of ethics for Directors and Senior Management respectively.
thDate: 14 May, 2014Place: New Delhi Chairman and Managing Director
Deepak Puri
46 47
vi) Generation of checklist for valid transfer deeds.
vii) Correction of data in the computer system on the basis of changes marked in the checklist.
viii) Recording of transfer of shares in the computer system.
ix) Endorsement and signatures on the reverse side of the share certificates.
x) Generation of covering letters for the transferred share certificates and dispatch of transferred share certificates, objection memos and notices by registered post.
Following is the procedure for dematerialization of shares –
i) Entry of the share certificates and the dematerialization request form in the computer.
ii) Scrutiny of the share certificates and the dematerialization request form in the computer.
iii) Tallying of signature of the shareholder on the dematerialization request form with the specimen signature available with the Registrar and Share Transfer Agent.
iv) Data entry of dematerialization request forms.
v) Generation of checklist.
vi) Change of shares from physical to dematerialized mode.
vii) Send confirmation to NSDL and CDS (I) L.
k) DEMATERIALISATION OF SHARES AND LIQUIDITY
The Equity Shares of the Company are actively traded at major Stock Exchanges in dematerialized mode. As on December 31, 2013 99.52% of the shares were held in dematerialized mode by 94.81% of the total shareholders of the Company.
l) Public issue, right issue, preferential issue and GDR/ADR etc.:
Pursuant to Corporate Debt Restructuring Scheme, the Company allotted 3,00,00,000 (Three Crores) Equity Shares of ` 10/- each on preferential basis to Mr. Deeepak Puri during the year under review and 1,00,00,000
thequity shares were alloted on 28 February, 2014.
The Company has not issued any Global Depository Receipt / American Depository Receipt / Warrant or any convertible instrument, which is likely to have an impact on the Company’s equity.
m) LOCATION OF PLANTS
i) 66, NSEZ, Noida, District- Gautam Budh Nagar U.P.
ii) A-164, Sector 80 Noida- II, Distt. Gautam Budh Nagar U.P.
iii) 66, Udyog Vihar Industrial Area, Greater Noida, U.P.
n) CONVERTIBLE SECURITIES
As on December 31, 2013, no convertible securities including Global Depositary Receipts were outstanding for conversion into an equal number of Equity Shares.
o) ADDRESS FOR INVESTOR CORRESPONDENCE
(i) Registrar and Share Transfer Agent MCS Limited (All correspondence regarding transfer and F- 65, Ist Floor, Okhla Industrial Area, Phase- I, dematerialization of share certificates) New Delhi – 110 020
Phone No.: 011-41406149/ 41406151/ 41406152/41709885/Fax No.: 011-4170988E-mail: [email protected]
(ii) Company(For any other information) Company SecretaryMoser Baer India Limited43-B, Okhla Industrial Estate, New Delhi 110020Phone No.: 011-40594444Fax No.: 011-41635211/26911860E-mail: [email protected]
11. OTHER INFORMATION
a. In terms of the provisions of Section 205C of the Companies Act, 1956, unclaimed equity dividend for the year 1995-96, 1996-97, 1997-98 , 1998-99, 1999-2000, 2000-2001, 2001-02, 2002-03, 2003-04 , 2004-05 and 2005-06 has been transferred to the Investor Education and Protection Fund.
b. The Company shall transfer the amount remaining unpaid in its dividend account for the year 2006-07 to the Investor Education and Protection Fund on/before 20th September, 2014.
c. A brief resume as required under this clause of the Directors seeking reappointment has been provided in the Notice calling the Annual General Meeting
11. ADOPTION OF NEW CORPORATE GOVERNANCE CLAUSE
Compliance with mandatory and non-mandatory list of items:-
Your Company ensures that it complies with all the mandatory list of items mentioned in the corporate governance clause. It will endeavor, in future, to comply with the following non-mandatory list of items provided in the corporate governance clause; wherever applicable
1. The Chairman of the Board
The Chairman of the Company is an Executive Director thus, the entitlement to maintain Chairman’s office at the Company’s expense and further reimbursement of expenses incurred in performance of his duties is not applicable to the Company.
2. Nomination and Remuneration Committee
The Board has constituted a Nomination and Remuneration Committee of the Company comprising Independent Directors for determining remuneration packages (including any other compensation) for Executive Directors.
3. Shareholders Rights
The Company publishes its quarterly results in the leading newspapers and regularly uploads the results and the financial statements and key events on its website. However, the Company does not send the declaration of the half yearly financial performance or a summary of significant events to each shareholder of the Company.
4. Postal Ballot
The company believes that the shareholders, who are unable to attend the meetings, do also vote on matters required the approval of the shareholders of the Company. As elaborately mentioned above, certain matters reserved for postal ballot as per listing agreement are passed through vote by postal ballot. During the period under review, resolutions were passed through Postal Ballot as per details given in this section.
5. Audit Qualifications
The report of Statutory Auditors’ of the Company is attached to the financial statements of the Company. The Company has always strived and achieved the regime of unqualified Auditors Report.
6. Training of Board Members
The Company endeavors to organize training programme for its Board members.
7. Mechanism for evaluating Non-Executive Board members.
The performance evaluation of Non-Executive Directors will be done in the due course of time.
8. Whistle Blower Policy:
The Company has a code of conduct for its Directors and senior managerial personnel which allow them to report any matter relating to unethical conduct or conflict of interest to their immediate supervisor. Further, the Company also has a formal Whistle Blower Policy to report to management instances of any unethical behavior, moral turpitude, financial misappropriation, Actual/suspected/anticipated fraud or violation of Company’s Code of Conduct.
COMPLIANCE WITH THE CODE OF ETHICS
Good corporate governance ultimately requires people of integrity. A code of conduct is an effective way to guide the behavior of directors and Senior Management Personnel to demonstrate the commitment of the company to ethical practices. The Code has been circulated to all the members of the Board and Senior Management and the compliance of the same has been affirmed by them. A declaration signed by the Managing Director to this effect is given below:
CERTIFICATE FOR COMPLIANCE WITH THE CODE OF ETHICS
This is certify that, to the best of my knowledge and belief, for the financial year ended on December 31, 2013, all the Board members and Senior Management Personnel have affirmed compliance with the code of ethics for Directors and Senior Management respectively.
thDate: 14 May, 2014Place: New Delhi Chairman and Managing Director
Deepak Puri
48 49
MANAGING DIRECTOR AND GROUP CHIEF FINANCIAL OFFICER CERTIFICATION
We, Deepak Puri, managing Director and Yogesh Mathur, Group CFO of Moser Baer India Limited certify to the Board that:
(a) We have reviewed financial statements and the cash flow statement for the financial period ended on December 31, 2013 and that to the best of their knowledge and belief:
(i) These statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading;
(ii) These statements together present a true and fair view of the company’s affairs and are in compliance with existing accounting standards, applicable laws and regulations.
(b) There are, to the best of our knowledge and belief, no transactions entered into by the company during the financial period which are fraudulent, illegal or violative of the company’s code of conduct.
(c) We accept responsibility for establishing and maintaining internal controls for financial reporting and that We have evaluated the effectiveness of internal control systems of the company pertaining to financial reporting and We have disclosed to the auditors and the Audit Committee, deficiencies in the design or operation of such internal controls, if any, of which we are aware and the steps we have taken or propose to take to rectify these deficiencies.
(d) We have indicated to the auditors and the Audit committee
(i) Significant changes in internal control over financial reporting during the period;
During the Financial period ended on December 31, 2013. There were no significant changes in internal control over financial reporting.
(ii) Significant changes in accounting policies during the period and that the same have been disclosed in the notes to the financial statements;
During the financial period ended on December 31, 2013, there were no significant changes in accounting policies.
(iii) Instances of significant fraud of which we have become aware and the involvement therein, if any, of the management or an employee having a significant role in the company’s internal control system over financial reporting.
During the financial period ended on December 31, 2013, there were no instances of the above nature.
thDate: 28 February, 2014 Deepak Puri Yogesh MathurPlace: New Delhi Chairman & Group CFO
Managing Director
Auditor’s certificate on compliance with the conditions of corporate
governance under clause 49 of the listing agreement
To the Members of Moser Baer India Limited
We have examined the compliance of conditions of corporate governance by Moser Baer India Limited (“the Company”) for
the nine months period from 1 April 2013 to 31 December 2013, as stipulated in clause 49 of the listing agreement of the
Company with the stock exchange.
The compliance of conditions of corporate governance is the responsibility of the management. Our examination was
limited to procedures and implementation thereof, adopted by the Company, for ensuring the compliance of the conditions
of corporate governance as stipulated in said clause. It is neither an audit nor an expression of opinion on the financial
statements of the Company.
In our opinion and to the best of our information and according to the explanations given to us, and as per representations
made by directors and the management, we certify that the Company has complied with the conditions of corporate
governance as stipulated in the above mentioned listing agreement.
We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or
effectiveness with which the management has conducted the affairs of the Company.
For Walker, Chandiok & Co LLP (Formerly walker chandiok & Co.)
Chartered Accountants
Firm Registration No: 001076N
per Neeraj Goel
Partner
Membership No. 099514
Place: New Delhi
Date : 14 May 2014
48 49
MANAGING DIRECTOR AND GROUP CHIEF FINANCIAL OFFICER CERTIFICATION
We, Deepak Puri, managing Director and Yogesh Mathur, Group CFO of Moser Baer India Limited certify to the Board that:
(a) We have reviewed financial statements and the cash flow statement for the financial period ended on December 31, 2013 and that to the best of their knowledge and belief:
(i) These statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading;
(ii) These statements together present a true and fair view of the company’s affairs and are in compliance with existing accounting standards, applicable laws and regulations.
(b) There are, to the best of our knowledge and belief, no transactions entered into by the company during the financial period which are fraudulent, illegal or violative of the company’s code of conduct.
(c) We accept responsibility for establishing and maintaining internal controls for financial reporting and that We have evaluated the effectiveness of internal control systems of the company pertaining to financial reporting and We have disclosed to the auditors and the Audit Committee, deficiencies in the design or operation of such internal controls, if any, of which we are aware and the steps we have taken or propose to take to rectify these deficiencies.
(d) We have indicated to the auditors and the Audit committee
(i) Significant changes in internal control over financial reporting during the period;
During the Financial period ended on December 31, 2013. There were no significant changes in internal control over financial reporting.
(ii) Significant changes in accounting policies during the period and that the same have been disclosed in the notes to the financial statements;
During the financial period ended on December 31, 2013, there were no significant changes in accounting policies.
(iii) Instances of significant fraud of which we have become aware and the involvement therein, if any, of the management or an employee having a significant role in the company’s internal control system over financial reporting.
During the financial period ended on December 31, 2013, there were no instances of the above nature.
thDate: 28 February, 2014 Deepak Puri Yogesh MathurPlace: New Delhi Chairman & Group CFO
Managing Director
Auditor’s certificate on compliance with the conditions of corporate
governance under clause 49 of the listing agreement
To the Members of Moser Baer India Limited
We have examined the compliance of conditions of corporate governance by Moser Baer India Limited (“the Company”) for
the nine months period from 1 April 2013 to 31 December 2013, as stipulated in clause 49 of the listing agreement of the
Company with the stock exchange.
The compliance of conditions of corporate governance is the responsibility of the management. Our examination was
limited to procedures and implementation thereof, adopted by the Company, for ensuring the compliance of the conditions
of corporate governance as stipulated in said clause. It is neither an audit nor an expression of opinion on the financial
statements of the Company.
In our opinion and to the best of our information and according to the explanations given to us, and as per representations
made by directors and the management, we certify that the Company has complied with the conditions of corporate
governance as stipulated in the above mentioned listing agreement.
We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or
effectiveness with which the management has conducted the affairs of the Company.
For Walker, Chandiok & Co LLP (Formerly walker chandiok & Co.)
Chartered Accountants
Firm Registration No: 001076N
per Neeraj Goel
Partner
Membership No. 099514
Place: New Delhi
Date : 14 May 2014
50
Independent Auditors’ Report To the Members of Moser Baer India Limited
Report on the Financial Statements
1. We have audited the accompanying financial statements of Moser Baer India Limited, (“the Company”), which
comprise the Balance Sheet as at 31 December 2013, and the Statement of Profit and Loss and Cash Flow Statement
for the nine months period from 1 April 2013 to 31 December 2013, then ended (“the period”), and a summary of
significant accounting policies and other explanatory information.
Management’s Responsibility for the Financial Statements
2. Management is responsible for the preparation of these financial statements, that give a true and fair view of the
financial position, financial performance and cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards notified under the Companies Act, 1956 (“the Act”)
read with the General Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respect of
section 133 of the Companies Act, 2013. This responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
3. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit
in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those
Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material misstatement.
4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments,
the auditor considers internal control relevant to the Company’s preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of Company’s internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of the accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
Opinion
6. In our opinion and to the best of our information and according to the explanations given to us, the financial
statements give the information required by the Act in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India:
i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31 December 2013;
ii) in the case of Statement of Profit and Loss, of the loss for the period, from 1 April 2013 to 31 December
2013,; and
iii) in the case of the Cash Flow Statement, of the cash flows for the period, from 1 April 2013 to 31 December
2013.
Emphasis of Matter
7. We draw attention to note 44(d) and 45 to the financial statements which describes the ongoing re-structuring
discussion with FCCB holders, the related accounting and the fact that the Company has incurred a net loss of Rs.
4,466,627,030 during the period 1 April 2013 to 31 December 2013, and as of 31 December 2013 the Company’s
accumulated losses aggregate to Rs. 3,436,395,366 resulting in a complete erosion of the net worth of the Company.
Further as on that date, the Company’s current liabilities exceed its current assets by Rs. 9,671,083,236. These
conditions, along with matters set forth in note 44(d) and 45, indicate the existence of material uncertainty that may
cast significant doubt about the Company’s ability to continue as a going concern. Our opinion is not qualified in
respect of this matter.
51
8. We draw attention to note 49 to the financial statements with respect to management’s assessment of permanent
diminution in the value of investments and recoverability of advances and other receivables from three subsidiaries
namely Helios Photo Voltaic Limited (HPVL) (formerly known as Moser Baer Photovoltaic Limited), Moser Baer Solar
Limited (MBSL) and Moser Baer Entertainment Limited (MBEL) aggregating to Rs. 1,582,762,004, Rs. 6,141,411,910
and Rs. 3,271,631,829 respectively. The conclusion of diminution in the value of investments and recoverability of
advances and other receivables are dependent on successful implementation of business plans and new
technologies, external market conditions, regulatory benefits and full implementation of debt restructuring in the
terms as proposed by the HVPL and MBSL, which are materially uncertain. Our opinion is not qualified in respect of
this matter.
Report on Other Legal and Regulatory Requirements
9. As required by the Companies (Auditor’s Report) Order, 2003 (“the Order”) issued by the Central Government of India
in terms of sub-section (4A) of Section 227 of the Act, we give in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the Order.
10. As required by Section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the best of our knowledge and belief were
necessary for the purpose of our audit;
b. in our opinion, proper books of account as required by law have been kept by the Company so far as appears
from our examination of those books;
c. the financial statements dealt with by this report are in agreement with the books of account;
d. in our opinion, the financial statements comply with the Accounting Standards notified under the
Companies Act, 1956 read with the General Circular 15/2013 dated 13 September 2013 of the Ministry of
Corporate Affairs in respect of section 133 of the Companies Act, 2013; and
e. on the basis of written representations received from the directors, as on 31 December 2013 and taken on
record by the Board of Directors, none of the directors is disqualified as on 31 December 2013 from being
appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Act.
For Walker, Chandiok & Co
Chartered Accountants
Firm Registration No.: 001076N
per Ashish Gupta
Partner
Membership No.: 504662
Place: New Delhi
Date: 28 February 2014
50
Independent Auditors’ Report To the Members of Moser Baer India Limited
Report on the Financial Statements
1. We have audited the accompanying financial statements of Moser Baer India Limited, (“the Company”), which
comprise the Balance Sheet as at 31 December 2013, and the Statement of Profit and Loss and Cash Flow Statement
for the nine months period from 1 April 2013 to 31 December 2013, then ended (“the period”), and a summary of
significant accounting policies and other explanatory information.
Management’s Responsibility for the Financial Statements
2. Management is responsible for the preparation of these financial statements, that give a true and fair view of the
financial position, financial performance and cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards notified under the Companies Act, 1956 (“the Act”)
read with the General Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respect of
section 133 of the Companies Act, 2013. This responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
3. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit
in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those
Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material misstatement.
4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments,
the auditor considers internal control relevant to the Company’s preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of Company’s internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of the accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
Opinion
6. In our opinion and to the best of our information and according to the explanations given to us, the financial
statements give the information required by the Act in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India:
i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31 December 2013;
ii) in the case of Statement of Profit and Loss, of the loss for the period, from 1 April 2013 to 31 December
2013,; and
iii) in the case of the Cash Flow Statement, of the cash flows for the period, from 1 April 2013 to 31 December
2013.
Emphasis of Matter
7. We draw attention to note 44(d) and 45 to the financial statements which describes the ongoing re-structuring
discussion with FCCB holders, the related accounting and the fact that the Company has incurred a net loss of Rs.
4,466,627,030 during the period 1 April 2013 to 31 December 2013, and as of 31 December 2013 the Company’s
accumulated losses aggregate to Rs. 3,436,395,366 resulting in a complete erosion of the net worth of the Company.
Further as on that date, the Company’s current liabilities exceed its current assets by Rs. 9,671,083,236. These
conditions, along with matters set forth in note 44(d) and 45, indicate the existence of material uncertainty that may
cast significant doubt about the Company’s ability to continue as a going concern. Our opinion is not qualified in
respect of this matter.
51
8. We draw attention to note 49 to the financial statements with respect to management’s assessment of permanent
diminution in the value of investments and recoverability of advances and other receivables from three subsidiaries
namely Helios Photo Voltaic Limited (HPVL) (formerly known as Moser Baer Photovoltaic Limited), Moser Baer Solar
Limited (MBSL) and Moser Baer Entertainment Limited (MBEL) aggregating to Rs. 1,582,762,004, Rs. 6,141,411,910
and Rs. 3,271,631,829 respectively. The conclusion of diminution in the value of investments and recoverability of
advances and other receivables are dependent on successful implementation of business plans and new
technologies, external market conditions, regulatory benefits and full implementation of debt restructuring in the
terms as proposed by the HVPL and MBSL, which are materially uncertain. Our opinion is not qualified in respect of
this matter.
Report on Other Legal and Regulatory Requirements
9. As required by the Companies (Auditor’s Report) Order, 2003 (“the Order”) issued by the Central Government of India
in terms of sub-section (4A) of Section 227 of the Act, we give in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the Order.
10. As required by Section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the best of our knowledge and belief were
necessary for the purpose of our audit;
b. in our opinion, proper books of account as required by law have been kept by the Company so far as appears
from our examination of those books;
c. the financial statements dealt with by this report are in agreement with the books of account;
d. in our opinion, the financial statements comply with the Accounting Standards notified under the
Companies Act, 1956 read with the General Circular 15/2013 dated 13 September 2013 of the Ministry of
Corporate Affairs in respect of section 133 of the Companies Act, 2013; and
e. on the basis of written representations received from the directors, as on 31 December 2013 and taken on
record by the Board of Directors, none of the directors is disqualified as on 31 December 2013 from being
appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Act.
For Walker, Chandiok & Co
Chartered Accountants
Firm Registration No.: 001076N
per Ashish Gupta
Partner
Membership No.: 504662
Place: New Delhi
Date: 28 February 2014
52
Annexure to the Independent Auditors' Report of even date to the members of Moser Baer India Limited, on the financial statements for the nine months from 1 April 2013 to 31 December 2013 (“the period”)
Based on the audit procedures performed for the purpose of reporting a true and fair view on the financial statements of the Company and taking into consideration the information and explanations given to us and the books of account and other records examined by us in the normal course of audit, we report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a regular program of physical verification of its fixed assets under which fixed assets are verified in a phased manner over a period of three financial years, which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.
(c) In our opinion, a substantial part of fixed assets has not been disposed off during the period.
(ii) (a) The management has conducted physical verification of inventory at reasonable intervals during the period.
(b) The procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no material discrepancies between physical inventory and book records were noticed on physical verification.
(iii) (a) The Company has granted unsecured loans to three parties covered in the register maintained under Section 301 of the Act. The maximum amount outstanding during the period is Rs. 1,503,630,160 and the period-end balance is Rs. 895,849,270.
(b) In our opinion, the rate of interest and other terms and conditions of such loans are not, prima facie, prejudicial to the interest of the Company.
(c) In respect of loan granted to one party, the principal amount is not due for repayment currently however, receipt of interest is not regular. In respect of loans granted to other parties, the principal and interest amounts are repayable on demand and since the repayment of such loans and interest has not been demanded, in our opinion, receipt of the principal and interest amount is regular.
(d) There is no overdue amount in respect of loans granted to such companies, firms or other parties, except for overdue interest for which reasonable steps have been taken by the Company.
(e) The Company has not taken any loans, secured or unsecured from companies, firms or other parties covered in the register maintained under Section 301 of the Act. Accordingly, the provisions of clauses 4(iii)(f) and 4(iii)(g) of the Order are not applicable.
(iv) In our opinion, there is an adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods and services. During the course of our audit, no major weakness has been noticed in the internal control system in respect of these areas.
(v) (a) In our opinion, the particulars of all contracts or arrangements that need to be entered into the register maintained under Section 301 of the Act have been so entered.
(b) In our opinion, the transactions made in pursuance of such contracts or arrangements and exceeding the value of Rupees five lakhs in respect of any party during the period have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.
(vi) The Company has not accepted any deposits from the public within the meaning of Sections 58A and 58AA of the Act and the Companies (Acceptance of Deposits) Rules, 1975. Accordingly, the provisions of clause 4(vi) of the Order are not applicable.
(vii) In our opinion, the Company has an internal audit system commensurate with its size and the nature of its business.
(viii) We have broadly reviewed the books of account maintained by the Company pursuant to the Rules made by the Central Government for the maintenance of cost records under clause (d) of sub-section (1) of Section 209 of the Act in respect of Company’s products and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
(ix) (a) Undisputed statutory dues including provident fund, investor education and protection fund, employees’ state insurance, income-tax, sales-tax, wealth tax, service tax, custom duty, excise duty, cess and other material statutory dues, as applicable, have generally been regularly deposited with the appropriate authorities, though there has been a slight delay in a few cases. Further, no undisputed amounts payable in respect thereof were outstanding at the period-end for a period of more than six months from the date they became payable.
53
Annexure to the Independent Auditors' Report of even date to the members of Moser Baer India Limited, on the financial statements for the nine months from 1 April 2013 to 31 December 2013 (“the period”)
(b) The dues outstanding in respect of income-tax, sales-tax, wealth tax, service tax, custom duty, excise duty, cess on account of any dispute, are as follows:
Name of the Nature of dues Amount Amount Paid Period to Forum where disputestatute (Rs.) under protest which the is pending
(Rs.) amount relates
Custom Duty Customs duty 13,924,896 - FY 2007-08 CESTAT, Chennai
Act, 1962Custom duty 9,749,862 - FY 2008-09 High Court of Allahabad
Custom duty 4,823,292 4,823,292 FY 2009-10 to CESTAT, New Delhi2011-12
Excise Duty Excise duty 423,833,155 950,837 FY2006-07 to CESTAT, New DelhiAct, 1948 2011-12
Excise duty 976,028 31,690 FY 2011-12 to Assistant Commissioner2013-14 Custom and Central Excise,
Noida
Excise duty 581,535,930 - FY 2007-08 to Commissioner Custom andFY 2012-13 Central Excise, Noida
Excise duty 9,068,008 - FY 2006-07 Additional CommissionerFY 2011-12 Custom and Central Excise,FY 2013-13 Noida
Finance Act, Service tax 288,254,463 2,953,470 FY 2003-04 to Commissioner Custom and1994 2004-05, Central Excise, Noida
FY 2006-07 to2012-13
Service tax 5,440,788 - FY 1999-00 Deputy CommissionerCustoms and Central Excise,Noida
Service tax 3,920,092 - FY 2000-01 to High Court, Allahabad2001-02
Service tax 63,316,764 - FY 2005-06 CESTAT, New Delhi
Service tax 10,332,940 - FY 2008-09 to Additional Commissioner2010-11 Custom and Central Excise,
Noida
Service tax 315,983,368 - FY 2008-09 to Commissioner Customs and2011-12 Central Excise, Delhi
Service tax 8,679,779 - FY 2012-13 Commissioner Service Tax,Delhi.
Entry Tax Act Entry tax 120,161,327 7,050,841 FY 1999-00 to Supreme Court of India2001-02
Entry tax 2,930,424 1,465,308 FY 2003-04 to High Court, Allahabad2007-08
Entry tax 4,241,834 1,838,272 FY 2004-05 Commercial Tax Tribunal,FY 2005-06 NoidaFY 2008-09
Entry tax 6,185,487 1,546,372 FY 2007-08 Additional Commissioner,(Appeals).
Entry Tax 276,135 27,650 FY 2007-08 Deputy Commissioner,Raipur (Appeals)
52
Annexure to the Independent Auditors' Report of even date to the members of Moser Baer India Limited, on the financial statements for the nine months from 1 April 2013 to 31 December 2013 (“the period”)
Based on the audit procedures performed for the purpose of reporting a true and fair view on the financial statements of the Company and taking into consideration the information and explanations given to us and the books of account and other records examined by us in the normal course of audit, we report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a regular program of physical verification of its fixed assets under which fixed assets are verified in a phased manner over a period of three financial years, which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.
(c) In our opinion, a substantial part of fixed assets has not been disposed off during the period.
(ii) (a) The management has conducted physical verification of inventory at reasonable intervals during the period.
(b) The procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no material discrepancies between physical inventory and book records were noticed on physical verification.
(iii) (a) The Company has granted unsecured loans to three parties covered in the register maintained under Section 301 of the Act. The maximum amount outstanding during the period is Rs. 1,503,630,160 and the period-end balance is Rs. 895,849,270.
(b) In our opinion, the rate of interest and other terms and conditions of such loans are not, prima facie, prejudicial to the interest of the Company.
(c) In respect of loan granted to one party, the principal amount is not due for repayment currently however, receipt of interest is not regular. In respect of loans granted to other parties, the principal and interest amounts are repayable on demand and since the repayment of such loans and interest has not been demanded, in our opinion, receipt of the principal and interest amount is regular.
(d) There is no overdue amount in respect of loans granted to such companies, firms or other parties, except for overdue interest for which reasonable steps have been taken by the Company.
(e) The Company has not taken any loans, secured or unsecured from companies, firms or other parties covered in the register maintained under Section 301 of the Act. Accordingly, the provisions of clauses 4(iii)(f) and 4(iii)(g) of the Order are not applicable.
(iv) In our opinion, there is an adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods and services. During the course of our audit, no major weakness has been noticed in the internal control system in respect of these areas.
(v) (a) In our opinion, the particulars of all contracts or arrangements that need to be entered into the register maintained under Section 301 of the Act have been so entered.
(b) In our opinion, the transactions made in pursuance of such contracts or arrangements and exceeding the value of Rupees five lakhs in respect of any party during the period have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.
(vi) The Company has not accepted any deposits from the public within the meaning of Sections 58A and 58AA of the Act and the Companies (Acceptance of Deposits) Rules, 1975. Accordingly, the provisions of clause 4(vi) of the Order are not applicable.
(vii) In our opinion, the Company has an internal audit system commensurate with its size and the nature of its business.
(viii) We have broadly reviewed the books of account maintained by the Company pursuant to the Rules made by the Central Government for the maintenance of cost records under clause (d) of sub-section (1) of Section 209 of the Act in respect of Company’s products and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
(ix) (a) Undisputed statutory dues including provident fund, investor education and protection fund, employees’ state insurance, income-tax, sales-tax, wealth tax, service tax, custom duty, excise duty, cess and other material statutory dues, as applicable, have generally been regularly deposited with the appropriate authorities, though there has been a slight delay in a few cases. Further, no undisputed amounts payable in respect thereof were outstanding at the period-end for a period of more than six months from the date they became payable.
53
Annexure to the Independent Auditors' Report of even date to the members of Moser Baer India Limited, on the financial statements for the nine months from 1 April 2013 to 31 December 2013 (“the period”)
(b) The dues outstanding in respect of income-tax, sales-tax, wealth tax, service tax, custom duty, excise duty, cess on account of any dispute, are as follows:
Name of the Nature of dues Amount Amount Paid Period to Forum where disputestatute (Rs.) under protest which the is pending
(Rs.) amount relates
Custom Duty Customs duty 13,924,896 - FY 2007-08 CESTAT, Chennai
Act, 1962Custom duty 9,749,862 - FY 2008-09 High Court of Allahabad
Custom duty 4,823,292 4,823,292 FY 2009-10 to CESTAT, New Delhi2011-12
Excise Duty Excise duty 423,833,155 950,837 FY2006-07 to CESTAT, New DelhiAct, 1948 2011-12
Excise duty 976,028 31,690 FY 2011-12 to Assistant Commissioner2013-14 Custom and Central Excise,
Noida
Excise duty 581,535,930 - FY 2007-08 to Commissioner Custom andFY 2012-13 Central Excise, Noida
Excise duty 9,068,008 - FY 2006-07 Additional CommissionerFY 2011-12 Custom and Central Excise,FY 2013-13 Noida
Finance Act, Service tax 288,254,463 2,953,470 FY 2003-04 to Commissioner Custom and1994 2004-05, Central Excise, Noida
FY 2006-07 to2012-13
Service tax 5,440,788 - FY 1999-00 Deputy CommissionerCustoms and Central Excise,Noida
Service tax 3,920,092 - FY 2000-01 to High Court, Allahabad2001-02
Service tax 63,316,764 - FY 2005-06 CESTAT, New Delhi
Service tax 10,332,940 - FY 2008-09 to Additional Commissioner2010-11 Custom and Central Excise,
Noida
Service tax 315,983,368 - FY 2008-09 to Commissioner Customs and2011-12 Central Excise, Delhi
Service tax 8,679,779 - FY 2012-13 Commissioner Service Tax,Delhi.
Entry Tax Act Entry tax 120,161,327 7,050,841 FY 1999-00 to Supreme Court of India2001-02
Entry tax 2,930,424 1,465,308 FY 2003-04 to High Court, Allahabad2007-08
Entry tax 4,241,834 1,838,272 FY 2004-05 Commercial Tax Tribunal,FY 2005-06 NoidaFY 2008-09
Entry tax 6,185,487 1,546,372 FY 2007-08 Additional Commissioner,(Appeals).
Entry Tax 276,135 27,650 FY 2007-08 Deputy Commissioner,Raipur (Appeals)
54
Annexure to the Independent Auditors' Report of even date to the members of Moser Baer India Limited, on the financial statements for the nine months from 1 April 2013 to 31 December 2013 (“the period”)
Name of the Nature of dues Amount (Rs.) Amount Paid Period to Forum where disputestatute under protest which the is pending
(Rs.) amount relates
Central SalesTax Act, 1956 and 2006-07 Noida
Sales tax 9,711,774 3,860,012 FY 2007-08 to Additional Commissioner,2008-09 (Appeals)
U.P. Trade Tax Value added tax 5,151,738 3,094,774 FY 2006-07 to Commercial Tax Tribunal,Act, 1948 2007-08 Noida
Value added tax 34,799,230 - FY 2000-01 to Deputy Commissioner2005-06 Khand 6, Noida
U.P. Value Added Value added tax 22,738,383 5,420,335 FY 2007-08 to Additional Commissioner,Tax Act, 2008 2008-09 (Appeals)
Value added tax 67,053,409 650,581 FY 2008-09 Commercial Tax Tribunal,Noida
Kerala VAT Act, Value added tax 4,689,127 1,216,662 FY 2007-08 Commercial Tax Assistant2005 Commissioner, Ernakulam
Chhattisgarh Value added tax 32,697 3,300 FY 2007-08 Deputy CommissionerVAT Act, 2005 Raipur (Appeals)
Kerala VAT Value added tax 516,998 - FY 2008-09 Deputy CommissionerAct, 2005 (Appeals)
West Bengal Value added tax 1,038,907 - FY 2009-10 Joint Commissioner, VAT Act 2003 West Bengal
Income Tax Income tax 115,689,581 34,500,000 AY 2004-05 to Income Tax AppellateAct, 1961 2007-08 Tribunal
Notes:
(i) FY - Financial year
(ii) AY – Assessment year
(x) In our opinion, the Company’s accumulated losses at the end of the period are more than fifty percent of its net worth. The Company has incurred cash losses in the current period and the immediately preceding financial year.
(xi) There are no dues payable to debenture-holders. The Company has defaulted in repayment of dues to banks and a financial institution as summarised below:
Particulars Amount (Rs.) Due date Delay in days
Banks 2,717,758 31 May 2013 214
3,175,432 30 June 2013 184
3,303,618 31 July 2013 153
5,304,084 31August 2013 122
48,551,632 30 September 2013 92
58,253,141 31 October 2013 61
72,820,010 30 November 2013 31
Sales tax 14,241,807 4,208,830 FY 2004-05 Commercial Tax Tribunal,
55
Annexure to the Independent Auditors' Report of even date to the members of Moser Baer India Limited, on the financial statements for the nine months from 1 April 2013 to 31 December 2013 (“the period”)
Particulars Amount (Rs.) Due date Delay in days
Financial institution 185,491 31 March 2013 275
1,258,371 30 April 2013 245
1,560,150 31 May 2013 214
2,843,718 30 June 2013 184
4,625,358 31 July 2013 153
4,625,358 31 August 2013 122
8,062,510 30 September 2013 92
4,742,574 31 October 2013 61
4,637,295 30 November 13 31
(xii) The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities. Accordingly, the provisions of clause 4(xii) of the Order are not applicable.
(xiii) In our opinion, the Company is not a chit fund or a nidhi/ mutual benefit fund/ society. Accordingly, provisions of clause 4(xiii) of the Order are not applicable.
(xiv) In our opinion, the Company is not dealing or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Order are not applicable.
(xv) The Company has given a guarantee in respect of loans taken by subsidiaries from banks, in respect of which no commission is charged from the subsidiaries. In our opinion, having regard to the long term involvement with the subsidiary companies and considering the explanations given to us in this regard, the terms and conditions of the above are not, prima facie, prejudicial to the interests of the Company.
(xvi) In our opinion, the Company has applied the term loans for the purpose for which these loans were obtained.
(xvii) In our opinion, no funds raised on short-term basis have been used for long-term investment by the Company.
(xviii) As per the terms of Master Restructuring Agreement, during the period, the Company has made preferential allotment of shares to parties covered in the register maintained under Section 301 of the Act. In our opinion, the price at which shares have been issued is not, prima facie, prejudicial to the interest of the Company.
(xix) The Company has neither issued nor had any outstanding debentures during the period.
(xx) The Company has not raised any money by public issues during the period. Accordingly, the provisions of clause 4(xx) of the Order are not applicable.
(xxi) No fraud on or by the Company has been noticed or reported during the period covered by our audit.
For Walker, Chandiok & Co
Chartered Accountants
Firm Registration No.: 001076N
per Ashish Gupta
Partner
Membership No.: 504662
Place: New Delhi
Date: 28 February 2014
54
Annexure to the Independent Auditors' Report of even date to the members of Moser Baer India Limited, on the financial statements for the nine months from 1 April 2013 to 31 December 2013 (“the period”)
Name of the Nature of dues Amount (Rs.) Amount Paid Period to Forum where disputestatute under protest which the is pending
(Rs.) amount relates
Central SalesTax Act, 1956 and 2006-07 Noida
Sales tax 9,711,774 3,860,012 FY 2007-08 to Additional Commissioner,2008-09 (Appeals)
U.P. Trade Tax Value added tax 5,151,738 3,094,774 FY 2006-07 to Commercial Tax Tribunal,Act, 1948 2007-08 Noida
Value added tax 34,799,230 - FY 2000-01 to Deputy Commissioner2005-06 Khand 6, Noida
U.P. Value Added Value added tax 22,738,383 5,420,335 FY 2007-08 to Additional Commissioner,Tax Act, 2008 2008-09 (Appeals)
Value added tax 67,053,409 650,581 FY 2008-09 Commercial Tax Tribunal,Noida
Kerala VAT Act, Value added tax 4,689,127 1,216,662 FY 2007-08 Commercial Tax Assistant2005 Commissioner, Ernakulam
Chhattisgarh Value added tax 32,697 3,300 FY 2007-08 Deputy CommissionerVAT Act, 2005 Raipur (Appeals)
Kerala VAT Value added tax 516,998 - FY 2008-09 Deputy CommissionerAct, 2005 (Appeals)
West Bengal Value added tax 1,038,907 - FY 2009-10 Joint Commissioner, VAT Act 2003 West Bengal
Income Tax Income tax 115,689,581 34,500,000 AY 2004-05 to Income Tax AppellateAct, 1961 2007-08 Tribunal
Notes:
(i) FY - Financial year
(ii) AY – Assessment year
(x) In our opinion, the Company’s accumulated losses at the end of the period are more than fifty percent of its net worth. The Company has incurred cash losses in the current period and the immediately preceding financial year.
(xi) There are no dues payable to debenture-holders. The Company has defaulted in repayment of dues to banks and a financial institution as summarised below:
Particulars Amount (Rs.) Due date Delay in days
Banks 2,717,758 31 May 2013 214
3,175,432 30 June 2013 184
3,303,618 31 July 2013 153
5,304,084 31August 2013 122
48,551,632 30 September 2013 92
58,253,141 31 October 2013 61
72,820,010 30 November 2013 31
Sales tax 14,241,807 4,208,830 FY 2004-05 Commercial Tax Tribunal,
55
Annexure to the Independent Auditors' Report of even date to the members of Moser Baer India Limited, on the financial statements for the nine months from 1 April 2013 to 31 December 2013 (“the period”)
Particulars Amount (Rs.) Due date Delay in days
Financial institution 185,491 31 March 2013 275
1,258,371 30 April 2013 245
1,560,150 31 May 2013 214
2,843,718 30 June 2013 184
4,625,358 31 July 2013 153
4,625,358 31 August 2013 122
8,062,510 30 September 2013 92
4,742,574 31 October 2013 61
4,637,295 30 November 13 31
(xii) The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities. Accordingly, the provisions of clause 4(xii) of the Order are not applicable.
(xiii) In our opinion, the Company is not a chit fund or a nidhi/ mutual benefit fund/ society. Accordingly, provisions of clause 4(xiii) of the Order are not applicable.
(xiv) In our opinion, the Company is not dealing or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Order are not applicable.
(xv) The Company has given a guarantee in respect of loans taken by subsidiaries from banks, in respect of which no commission is charged from the subsidiaries. In our opinion, having regard to the long term involvement with the subsidiary companies and considering the explanations given to us in this regard, the terms and conditions of the above are not, prima facie, prejudicial to the interests of the Company.
(xvi) In our opinion, the Company has applied the term loans for the purpose for which these loans were obtained.
(xvii) In our opinion, no funds raised on short-term basis have been used for long-term investment by the Company.
(xviii) As per the terms of Master Restructuring Agreement, during the period, the Company has made preferential allotment of shares to parties covered in the register maintained under Section 301 of the Act. In our opinion, the price at which shares have been issued is not, prima facie, prejudicial to the interest of the Company.
(xix) The Company has neither issued nor had any outstanding debentures during the period.
(xx) The Company has not raised any money by public issues during the period. Accordingly, the provisions of clause 4(xx) of the Order are not applicable.
(xxi) No fraud on or by the Company has been noticed or reported during the period covered by our audit.
For Walker, Chandiok & Co
Chartered Accountants
Firm Registration No.: 001076N
per Ashish Gupta
Partner
Membership No.: 504662
Place: New Delhi
Date: 28 February 2014
56
MOSER BAER INDIA LIMITEDBalance sheet as at 31 December 2013(All amounts in rupees, unless otherwise stated)
Notes As at 31 December 2013 31 March 2013
EQUITY AND LIABILITIES
Shareholders’ funds
Share capital 4 1,983,061,040 1,683,061,040
Reserves and surplus 5 (3,436,395,366) 1,807,092,703
(1,453,334,326) 3,490,153,743
Share application money pending allotment 6 63,000,000 200,000,000
Non current liabilities
Long term borrowings 7 9,720,286,387 10,882,614,589
Other long term liabilities 8 1,808,815,939 1,802,058,180
Long term provisions 9 233,649,333 226,321,781
11,762,751,659 12,910,994,550
Current liabilities
Short term borrowings 10 6,810,427,520 6,670,347,004
Trade payables 11 3,084,054,403 3,109,758,445
Other current liabilities 12 10,798,026,375 8,810,542,012
Short term provisions 13 1,622,862,658 1,074,004,211
22,315,370,956 19,664,651,672
32,687,788,289 36,265,799,965
ASSETS
Non current assets
Fixed assets
(a) Tangible assets 14 8,018,569,204 9,523,971,967
(b) Intangible assets 14 150,843,517 177,105,914
(c) Capital work-in-progress - 3,849,997
Non current investments 15 6,728,885,732 6,840,395,732
Long term loans and advances 16 1,111,928,529 1,546,954,710
Other non current assets 17 4,033,273,587 2,793,188,863
20,043,500,569 20,885,467,183
Current assets
Inventories 18 5,012,109,948 5,277,353,317
Trade receivables 19 4,964,832,222 6,175,884,759
Cash and bank balances 20 715,471,540 1,309,013,830
Short term loans and advances 21 630,453,400 601,313,312
Other current assets 22 1,321,420,610 2,016,767,564
Total current assets 12,644,287,720 15,380,332,782
32,687,788,289 36,265,799,965
The accompanying notes from 1 to 51 are an integral part of these financial statements.
This is the balance sheet referred to in our report of even date.
As at
For Walker, Chandiok & Co For and on behalf of the board of directors ofChartered Accountants MOSER BAER INDIA LIMITED
per Ashish Gupta Deepak Puri Nita PuriPartner Chairman and Director
Managing Director
Place: New Delhi Yogesh Mathur Minni KatariyaDate: 28 February 2014 Group CFO Head Legal and
Company Secretary
57
MOSER BAER INDIA LIMITEDStatement of profit and loss for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
Notes Period ended31 December 2013 31 March 2013
REVENUE
Revenue from operations (gross) 23 9,842,351,602 15,220,138,628
Less: Excise duty 398,830,877 557,037,410
Revenue from operations (net) 9,443,520,725 14,663,101,218
Other income 24 614,461,365 799,852,187
Total revenue 10,057,982,090 15,462,953,405
EXPENSES
Cost of materials consumed 25 5,018,362,166 7,307,567,563
Purchases of stock in trade 26 13,688,348 91,578,115
Change in stock of finished goods, 27 2,939,911 100,983,754 stock in trade and work-in-progress
Employee benefits expense 28 1,136,344,408 1,801,567,844
Depreciation and amortisation 29 1,542,746,510 2,902,323,680
Amortisation of foreign currency monetary item translation - 515,366,123 difference account
Finance cost 30 1,575,222,422 1,966,742,273
Other expenses 31 3,180,582,102 5,386,949,315
Total expenses 12,469,885,867 20,073,078,667
Loss before exceptional items and tax (2,411,903,777) (4,610,125,262)
Exceptional items 32 (2,054,723,253) 18,461,592
Loss before tax (4,466,627,030) (4,591,663,670)
Tax expense - -
Loss for the period/ year (4,466,627,030) (4,591,663,670)
Loss per equity share (refer note 41):
- Basic (24.07) (27.28)
- Diluted (24.07) (27.28)
The accompanying notes from 1 to 51 are an integral part of these financial statements.
This is the statement of profit and loss referred to in our report of even date.
Year ended
For Walker, Chandiok & Co For and on behalf of the board of directors ofChartered Accountants MOSER BAER INDIA LIMITED
per Ashish Gupta Deepak Puri Nita PuriPartner Chairman and Director
Managing Director
Place: New Delhi Yogesh Mathur Minni KatariyaDate: 28 February 2014 Group CFO Head Legal and
Company Secretary
56
MOSER BAER INDIA LIMITEDBalance sheet as at 31 December 2013(All amounts in rupees, unless otherwise stated)
Notes As at 31 December 2013 31 March 2013
EQUITY AND LIABILITIES
Shareholders’ funds
Share capital 4 1,983,061,040 1,683,061,040
Reserves and surplus 5 (3,436,395,366) 1,807,092,703
(1,453,334,326) 3,490,153,743
Share application money pending allotment 6 63,000,000 200,000,000
Non current liabilities
Long term borrowings 7 9,720,286,387 10,882,614,589
Other long term liabilities 8 1,808,815,939 1,802,058,180
Long term provisions 9 233,649,333 226,321,781
11,762,751,659 12,910,994,550
Current liabilities
Short term borrowings 10 6,810,427,520 6,670,347,004
Trade payables 11 3,084,054,403 3,109,758,445
Other current liabilities 12 10,798,026,375 8,810,542,012
Short term provisions 13 1,622,862,658 1,074,004,211
22,315,370,956 19,664,651,672
32,687,788,289 36,265,799,965
ASSETS
Non current assets
Fixed assets
(a) Tangible assets 14 8,018,569,204 9,523,971,967
(b) Intangible assets 14 150,843,517 177,105,914
(c) Capital work-in-progress - 3,849,997
Non current investments 15 6,728,885,732 6,840,395,732
Long term loans and advances 16 1,111,928,529 1,546,954,710
Other non current assets 17 4,033,273,587 2,793,188,863
20,043,500,569 20,885,467,183
Current assets
Inventories 18 5,012,109,948 5,277,353,317
Trade receivables 19 4,964,832,222 6,175,884,759
Cash and bank balances 20 715,471,540 1,309,013,830
Short term loans and advances 21 630,453,400 601,313,312
Other current assets 22 1,321,420,610 2,016,767,564
Total current assets 12,644,287,720 15,380,332,782
32,687,788,289 36,265,799,965
The accompanying notes from 1 to 51 are an integral part of these financial statements.
This is the balance sheet referred to in our report of even date.
As at
For Walker, Chandiok & Co For and on behalf of the board of directors ofChartered Accountants MOSER BAER INDIA LIMITED
per Ashish Gupta Deepak Puri Nita PuriPartner Chairman and Director
Managing Director
Place: New Delhi Yogesh Mathur Minni KatariyaDate: 28 February 2014 Group CFO Head Legal and
Company Secretary
57
MOSER BAER INDIA LIMITEDStatement of profit and loss for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
Notes Period ended31 December 2013 31 March 2013
REVENUE
Revenue from operations (gross) 23 9,842,351,602 15,220,138,628
Less: Excise duty 398,830,877 557,037,410
Revenue from operations (net) 9,443,520,725 14,663,101,218
Other income 24 614,461,365 799,852,187
Total revenue 10,057,982,090 15,462,953,405
EXPENSES
Cost of materials consumed 25 5,018,362,166 7,307,567,563
Purchases of stock in trade 26 13,688,348 91,578,115
Change in stock of finished goods, 27 2,939,911 100,983,754 stock in trade and work-in-progress
Employee benefits expense 28 1,136,344,408 1,801,567,844
Depreciation and amortisation 29 1,542,746,510 2,902,323,680
Amortisation of foreign currency monetary item translation - 515,366,123 difference account
Finance cost 30 1,575,222,422 1,966,742,273
Other expenses 31 3,180,582,102 5,386,949,315
Total expenses 12,469,885,867 20,073,078,667
Loss before exceptional items and tax (2,411,903,777) (4,610,125,262)
Exceptional items 32 (2,054,723,253) 18,461,592
Loss before tax (4,466,627,030) (4,591,663,670)
Tax expense - -
Loss for the period/ year (4,466,627,030) (4,591,663,670)
Loss per equity share (refer note 41):
- Basic (24.07) (27.28)
- Diluted (24.07) (27.28)
The accompanying notes from 1 to 51 are an integral part of these financial statements.
This is the statement of profit and loss referred to in our report of even date.
Year ended
For Walker, Chandiok & Co For and on behalf of the board of directors ofChartered Accountants MOSER BAER INDIA LIMITED
per Ashish Gupta Deepak Puri Nita PuriPartner Chairman and Director
Managing Director
Place: New Delhi Yogesh Mathur Minni KatariyaDate: 28 February 2014 Group CFO Head Legal and
Company Secretary
58
MOSER BAER INDIA LIMITEDCash flow statement for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
31 December 2013 31 March 2013
Cash flow from operating activities:
Net loss before income tax (4,466,627,030) (4,591,663,670)
Adjustments to reconcile net loss to net cash provided by/(used in) operating activities:
Depreciation and amortisation 1,542,746,510 2,902,323,680
Amortisation of foreign currency monetary item - 515,366,123 translation difference account
Unrealised foreign exchange gain 335,033,160 (193,717,980)
Old liabilities and provisions no longer required written back (42,704,706) (25,784,675)
Debtors/ advances written off 1,271,160,283 60,131
Reversal of interest expense for previous year under corporate - (187,313,968)debt restructuring scheme
Provision for warranty 830,766 1,448,781
Provision for doubtful debtors/ advances 36,167,900 -
Provision for slow moving stock 5,762,367 -
Provision for diminution in long term investments 111,510,000 168,852,376
(Profit)/ loss on sale of fixed assets (164) (8,790,243)
Finance cost 1,575,222,422 1,966,742,273
Interest income (173,093,680) (225,283,251)
Operating profit before working capital changes 196,007,828 322,239,577
Changes in working capital
Decrease in inventories 259,481,002 316,582,225
Decrease in trade receivables 1,203,623,996 1,191,794,876
Increase in loans and advances and other assets (1,355,353,117) (1,466,469,929)
(Decrease)/ increase in trade payables 11,272,785 52,575,611
Cash generated from operating activities 315,032,494 416,722,360
Income tax (paid)/ refund (net of tax deducted at source) (1,869,939) 33,146,592
Net cash generated from operating activities A 313,162,555 449,868,952
Cash flow from investing activities:
Purchase of fixed assets/additions to capital work-in-progress (533,954) (131,077,854)
Refund of capital advance 21,971,451 -
Proceeds from sale of fixed assets 401,228 24,207,367
Advances given to subsidiaries - (70,784,460)
Net proceeds/ (additions) from fixed bank deposits 87,686,532 (125,191,575)
Interest received 42,455,369 62,924,413
Net cash generated from/ (used in) investing activities B 151,980,626 (239,922,109)
Period ended Year ended
59
MOSER BAER INDIA LIMITEDCash flow statement for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
Period ended Year ended31 December 2013 31 March 2013
Cash flow from financing activities:
Proceeds from long term borrowings - 5,088,070,024
Repayment of long term borrowings (88,742,380) (1,225,206,328)
Net proceeds from short term borrowings 142,743,089 (2,031,189,677)
Finance costs paid (1,086,931,579) (1,890,853,617)
Dividend paid for earlier years (362,050) (377,008)
Proceeds from issuing shares/ receipt of share application money 163,000,000 200,000,000
Net cash (used in)/ generated from financing activities C (870,292,920) 140,443,394
Net (decrease)/ increase in cash and cash equivalents A + B + C (405,149,739) 350,390,237
Cash and cash equivalents at the beginning of the period/year 597,053,496 246,663,259
Cash and cash equivalents at the end of the period/year 191,903,757 597,053,496
(405,149,739) 350,390,237
The accompanying notes from 1 to 51 are an integral part of these financial statements.
This is the cash flow statement referred to in our report of even date.
For Walker, Chandiok & Co For and on behalf of the board of directors ofChartered Accountants MOSER BAER INDIA LIMITED
per Ashish Gupta Deepak Puri Nita PuriPartner Chairman and Director
Managing Director
Place: New Delhi Yogesh Mathur Minni KatariyaDate: 28 February 2014 Group CFO Head Legal and
Company Secretary
58
MOSER BAER INDIA LIMITEDCash flow statement for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
31 December 2013 31 March 2013
Cash flow from operating activities:
Net loss before income tax (4,466,627,030) (4,591,663,670)
Adjustments to reconcile net loss to net cash provided by/(used in) operating activities:
Depreciation and amortisation 1,542,746,510 2,902,323,680
Amortisation of foreign currency monetary item - 515,366,123 translation difference account
Unrealised foreign exchange gain 335,033,160 (193,717,980)
Old liabilities and provisions no longer required written back (42,704,706) (25,784,675)
Debtors/ advances written off 1,271,160,283 60,131
Reversal of interest expense for previous year under corporate - (187,313,968)debt restructuring scheme
Provision for warranty 830,766 1,448,781
Provision for doubtful debtors/ advances 36,167,900 -
Provision for slow moving stock 5,762,367 -
Provision for diminution in long term investments 111,510,000 168,852,376
(Profit)/ loss on sale of fixed assets (164) (8,790,243)
Finance cost 1,575,222,422 1,966,742,273
Interest income (173,093,680) (225,283,251)
Operating profit before working capital changes 196,007,828 322,239,577
Changes in working capital
Decrease in inventories 259,481,002 316,582,225
Decrease in trade receivables 1,203,623,996 1,191,794,876
Increase in loans and advances and other assets (1,355,353,117) (1,466,469,929)
(Decrease)/ increase in trade payables 11,272,785 52,575,611
Cash generated from operating activities 315,032,494 416,722,360
Income tax (paid)/ refund (net of tax deducted at source) (1,869,939) 33,146,592
Net cash generated from operating activities A 313,162,555 449,868,952
Cash flow from investing activities:
Purchase of fixed assets/additions to capital work-in-progress (533,954) (131,077,854)
Refund of capital advance 21,971,451 -
Proceeds from sale of fixed assets 401,228 24,207,367
Advances given to subsidiaries - (70,784,460)
Net proceeds/ (additions) from fixed bank deposits 87,686,532 (125,191,575)
Interest received 42,455,369 62,924,413
Net cash generated from/ (used in) investing activities B 151,980,626 (239,922,109)
Period ended Year ended
59
MOSER BAER INDIA LIMITEDCash flow statement for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
Period ended Year ended31 December 2013 31 March 2013
Cash flow from financing activities:
Proceeds from long term borrowings - 5,088,070,024
Repayment of long term borrowings (88,742,380) (1,225,206,328)
Net proceeds from short term borrowings 142,743,089 (2,031,189,677)
Finance costs paid (1,086,931,579) (1,890,853,617)
Dividend paid for earlier years (362,050) (377,008)
Proceeds from issuing shares/ receipt of share application money 163,000,000 200,000,000
Net cash (used in)/ generated from financing activities C (870,292,920) 140,443,394
Net (decrease)/ increase in cash and cash equivalents A + B + C (405,149,739) 350,390,237
Cash and cash equivalents at the beginning of the period/year 597,053,496 246,663,259
Cash and cash equivalents at the end of the period/year 191,903,757 597,053,496
(405,149,739) 350,390,237
The accompanying notes from 1 to 51 are an integral part of these financial statements.
This is the cash flow statement referred to in our report of even date.
For Walker, Chandiok & Co For and on behalf of the board of directors ofChartered Accountants MOSER BAER INDIA LIMITED
per Ashish Gupta Deepak Puri Nita PuriPartner Chairman and Director
Managing Director
Place: New Delhi Yogesh Mathur Minni KatariyaDate: 28 February 2014 Group CFO Head Legal and
Company Secretary
60
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
1 Basis of accounting
The financial statements are prepared under historical cost convention on an accrual basis, in accordance with the generally accepted accounting principles in India and to comply with the Accounting Standards prescribed in the Companies (Accounting Standards) Rules, 2006 issued by the Central Government in exercise of the power conferred under sub-section (I) (a) of section 642 and the relevant provisions of the Companies Act, 1956 (the ‘Act’) read with the General Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013. All assets and liabilities have been classified as current or non-current, wherever applicable as per the operating cycle of the Company as per the guidance as set out in the Revised Schedule VI to the Companies Act, 1956.
2 Use of estimates
The preparation of financial statements in conformity with the principles generally accepted in India requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent liabilities on the date of financial statements and the reported amounts of revenues and expenses during the reporting period. Example of such estimates include provisions for doubtful debts/ advances, employee retirement benefit plans, warranty, provision for income taxes, useful life of fixed assets, diminution in value of investments, other probable obligations and inventory write down. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in the current and future periods.
3 Significant accounting policies
(a) Revenue recognition
(i) Revenue from sale of goods
Revenue from sale of goods is recognised upon transfer of significant risks and rewards incident to ownership and when no significant uncertainty exists regarding realisation of the sale consideration. Sales are recorded net of sales returns, rebates, trade discounts and price differences and are inclusive of excise duty.
(ii) Revenue from sale of services
Service income comprises of revenue from assets given on lease and other services rendered.
(a) Revenue from assets given on lease is recorded in accordance with the accounting policy given below on ‘Leases’ .
(b) Income from other services is recognised as and when services are rendered.
(iii) Other income
Interest is accounted for based on a time proportion basis taking into account the amount invested and the underlying rate of interest. when no significant uncertainty exists regarding realisation of the sale consideration.
Dividend is recognised as and when the right of the Company to receive payment is established.
Export benefit entitlements under the Focused Product Scheme are recognised in the statement of profit and loss when the right to receive credit as per the terms of the scheme is established in respect of the exports made.
(b) Fixed assets
(i) Tangible assets
Tangible fixed assets are stated at cost less accumulated depreciation. Cost includes all expenses, direct and indirect, specifically attributable to its acquisition and bringing it to its working condition for its intended use.
Incidental expenditure pending allocation and attributable to the acquisition of fixed assets is allocated/ capitalised with the related fixed assets.
Capital expenditure incurred on rented properties is recorded as leasehold improvements under fixed assets to the extent such expenditure is of a permanent nature. Expenditure on assets which are of removable nature are recorded in the respective category of assets.
(ii) Intangible assets
Intangible assets are stated at cost less accumulated amortisation. The cost incurred to acquire techical know-how with “right to use and exploit” are capitalised where the right allows the Company to obtain a future economic benefit from use of such know-how.
61
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
Further, expenditure incurred on know-how yielding future economic benefits is recognised as internally generated intangible asset at cost less accumulated amortisation and impairment losses, if any.
Impairment, if any, in the carrying value of fixed assets is assessed at the end of each financial year in accordance with the accounting policy given below on “Impairment of assets”.
Fixed assets held for sale are recorded at lower of book value or estimated net realisable value.
(c) Depreciation and amortisation
(i) Tangible assets
Depreciation on tangible fixed assets is provided under straight-line method at rates specified in Schedule XIV to the Companies Act, 1956, being representative of the useful lives of tangible fixed assets.Leasehold improvements are being amortised over the primary lease period or useful lives of related fixed assets whichever is shorter.
Depreciation on additions is being provided on pro-rata basis from the date of such additions. Similarly, depreciation on assets sold/ disposed off during the period is being provided up to the date on which such assets are sold/ disposed off. All assets costing Rs. 5,000 or less are fully depreciated in the year of purchase.
In case the historical cost of an asset undergoes a change due to an increase or decrease in related long term liability on account of foreign exchange fluctuations on such long term liabilities, the depreciation on the revised unamortised depreciable amount is provided prospectively over the residual useful life of the asset.
(ii) Intangible assets
Intangible assets are being amortised on a straight line basis over the useful life, not exceeding 10 years, as estimated by management to be the economic life of the asset over which economic benefits are expected to flow.
(d) Research and development costs
Revenue expenditure on research is expensed off under the respective heads of account in the year in which it is incurred.
Expenditure on development activities, whereby research findings are applied to a plan or design for the production of new or substantially improved products and processes, is capitalised, if the cost can be reliably measured, the product or process is technically and commercially feasible and the Company has sufficient resources to complete the development and to use and sell the asset. The expenditure capitalised includes the cost of materials, direct labour and an appropriate proportion of overheads that are directly attributable to preparing the asset for its intended use. Other development expenditure is recognised in the statement of profit and loss as an expense as incurred.
Capitalised development expenditure is stated at cost less accumulated amortisation. Fixed assets used for research and development are depreciated in accordance with the Company’s policy on fixed assets as stated above.
(e) Investments
Long term investments are stated at cost of acquisition inclusive of expenditure incidental to acquisition. A provision for diminution is made to recognise a decline, other than temporary in the value of long term investments.
Current investments are stated at lower of cost and fair value determined on an individual basis.
(f) Inventories
(i) Inventories are valued as under:
Inventories are stated at lower of cost and net realisable value.
(ii) Cost of inventories is ascertained on the following basis:
- Cost of raw materials, goods held for resale, packing materials and stores and spares is determined on the basis of weighted average method.
- Cost of work in progress and finished goods is determined by considering direct material cost, labour costs and appropriate portion of overheads and non-recoverable duties.
Liability for excise duty in respect of goods manufactured by the Company, other than for exports, is accounted upon completion of manufacture.
60
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
1 Basis of accounting
The financial statements are prepared under historical cost convention on an accrual basis, in accordance with the generally accepted accounting principles in India and to comply with the Accounting Standards prescribed in the Companies (Accounting Standards) Rules, 2006 issued by the Central Government in exercise of the power conferred under sub-section (I) (a) of section 642 and the relevant provisions of the Companies Act, 1956 (the ‘Act’) read with the General Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013. All assets and liabilities have been classified as current or non-current, wherever applicable as per the operating cycle of the Company as per the guidance as set out in the Revised Schedule VI to the Companies Act, 1956.
2 Use of estimates
The preparation of financial statements in conformity with the principles generally accepted in India requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent liabilities on the date of financial statements and the reported amounts of revenues and expenses during the reporting period. Example of such estimates include provisions for doubtful debts/ advances, employee retirement benefit plans, warranty, provision for income taxes, useful life of fixed assets, diminution in value of investments, other probable obligations and inventory write down. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in the current and future periods.
3 Significant accounting policies
(a) Revenue recognition
(i) Revenue from sale of goods
Revenue from sale of goods is recognised upon transfer of significant risks and rewards incident to ownership and when no significant uncertainty exists regarding realisation of the sale consideration. Sales are recorded net of sales returns, rebates, trade discounts and price differences and are inclusive of excise duty.
(ii) Revenue from sale of services
Service income comprises of revenue from assets given on lease and other services rendered.
(a) Revenue from assets given on lease is recorded in accordance with the accounting policy given below on ‘Leases’ .
(b) Income from other services is recognised as and when services are rendered.
(iii) Other income
Interest is accounted for based on a time proportion basis taking into account the amount invested and the underlying rate of interest. when no significant uncertainty exists regarding realisation of the sale consideration.
Dividend is recognised as and when the right of the Company to receive payment is established.
Export benefit entitlements under the Focused Product Scheme are recognised in the statement of profit and loss when the right to receive credit as per the terms of the scheme is established in respect of the exports made.
(b) Fixed assets
(i) Tangible assets
Tangible fixed assets are stated at cost less accumulated depreciation. Cost includes all expenses, direct and indirect, specifically attributable to its acquisition and bringing it to its working condition for its intended use.
Incidental expenditure pending allocation and attributable to the acquisition of fixed assets is allocated/ capitalised with the related fixed assets.
Capital expenditure incurred on rented properties is recorded as leasehold improvements under fixed assets to the extent such expenditure is of a permanent nature. Expenditure on assets which are of removable nature are recorded in the respective category of assets.
(ii) Intangible assets
Intangible assets are stated at cost less accumulated amortisation. The cost incurred to acquire techical know-how with “right to use and exploit” are capitalised where the right allows the Company to obtain a future economic benefit from use of such know-how.
61
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
Further, expenditure incurred on know-how yielding future economic benefits is recognised as internally generated intangible asset at cost less accumulated amortisation and impairment losses, if any.
Impairment, if any, in the carrying value of fixed assets is assessed at the end of each financial year in accordance with the accounting policy given below on “Impairment of assets”.
Fixed assets held for sale are recorded at lower of book value or estimated net realisable value.
(c) Depreciation and amortisation
(i) Tangible assets
Depreciation on tangible fixed assets is provided under straight-line method at rates specified in Schedule XIV to the Companies Act, 1956, being representative of the useful lives of tangible fixed assets.Leasehold improvements are being amortised over the primary lease period or useful lives of related fixed assets whichever is shorter.
Depreciation on additions is being provided on pro-rata basis from the date of such additions. Similarly, depreciation on assets sold/ disposed off during the period is being provided up to the date on which such assets are sold/ disposed off. All assets costing Rs. 5,000 or less are fully depreciated in the year of purchase.
In case the historical cost of an asset undergoes a change due to an increase or decrease in related long term liability on account of foreign exchange fluctuations on such long term liabilities, the depreciation on the revised unamortised depreciable amount is provided prospectively over the residual useful life of the asset.
(ii) Intangible assets
Intangible assets are being amortised on a straight line basis over the useful life, not exceeding 10 years, as estimated by management to be the economic life of the asset over which economic benefits are expected to flow.
(d) Research and development costs
Revenue expenditure on research is expensed off under the respective heads of account in the year in which it is incurred.
Expenditure on development activities, whereby research findings are applied to a plan or design for the production of new or substantially improved products and processes, is capitalised, if the cost can be reliably measured, the product or process is technically and commercially feasible and the Company has sufficient resources to complete the development and to use and sell the asset. The expenditure capitalised includes the cost of materials, direct labour and an appropriate proportion of overheads that are directly attributable to preparing the asset for its intended use. Other development expenditure is recognised in the statement of profit and loss as an expense as incurred.
Capitalised development expenditure is stated at cost less accumulated amortisation. Fixed assets used for research and development are depreciated in accordance with the Company’s policy on fixed assets as stated above.
(e) Investments
Long term investments are stated at cost of acquisition inclusive of expenditure incidental to acquisition. A provision for diminution is made to recognise a decline, other than temporary in the value of long term investments.
Current investments are stated at lower of cost and fair value determined on an individual basis.
(f) Inventories
(i) Inventories are valued as under:
Inventories are stated at lower of cost and net realisable value.
(ii) Cost of inventories is ascertained on the following basis:
- Cost of raw materials, goods held for resale, packing materials and stores and spares is determined on the basis of weighted average method.
- Cost of work in progress and finished goods is determined by considering direct material cost, labour costs and appropriate portion of overheads and non-recoverable duties.
Liability for excise duty in respect of goods manufactured by the Company, other than for exports, is accounted upon completion of manufacture.
62
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
Net realisable value is the estimated selling price in the ordinary course of business, less estimated cost to affect the sale.
(iii) Provision for obsolescence and slow moving inventory is made based on management’s best estimates of net realisable value of such inventories.
(g) Government grants
Grants in the nature of contribution towards capital cost of setting up projects are treated as capital reserve and grants in respect of specific fixed assets are adjusted from the cost of the related fixed assets.
(h) Borrowing costs
Borrowing costs directly attributable to acquisition, construction or erection of fixed assets, which necessarily take a substantial period of time (generally 12 months or more) to be ready for the intended use, are capitalised. Capitalisation of borrowing costs ceases when substantially all the activities necessary to prepare the qualifying assets for their intended use are complete.Other borrowing costs are recognised as an expense in the statement of profit and loss in the year in which they are incurred.
(i) Employee benefits
(i) Provident fund and Employees’ state insurance
The Company makes contribution to statutory provident fund which is recognised by the income tax authorities in accordance with Employees Provident Fund and Miscellaneous Provisions Act, 1952 which is a defined contribution plan. These funds are administered through Regional Provident Fund Commissioner and contribution paid or payable is recognised as an expense in the period in which the services are rendered by the employee. The Company has no legal or constructive obligations to pay further contributions after payment of the fixed contribution.
The Company’s contribution to state plans namely Employee’s State Insurance Fund and Employee’s Pension Scheme 1995 is recognised as an expense in the period in which the services are rendered by the employee.
(ii) Gratuity
Gratuity is a post employment benefit and is in the nature of defined benefit plan. The liability recognised in the balance sheet in respect of gratuity is the present value of the defined benefit obligation as at the balance sheet date less the fair value of plan assets, together with adjustments for unrecognised actuarial gains or losses. Gratuity Fund is administered through Life Insurance Corporation of India. The defined benefit obligation is calculated at the balance sheet date on the basis of actuarial valuation by an independent actuary using projected unit credit method. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recorded in the statement of profit and loss in the year in which such gains or losses arise.
(iii) Unavalied leaves
The Company also provides benefit of compensated absences to its employees which are in the nature of long term benefit plan. The compensated absences comprises of vesting as well as non vesting benefit. Liability in respect of compensated absences becoming due and expected to be availed within one year from the balance sheet date is recognised on the basis of undiscounted value of estimated amount required to be paid or estimated value of benefits expected to be availed by the employees. Liability in respect of compensated absences becoming due and expected to be availed more than one year after the balance sheet date is estimated on the basis of an actuarial valuation performed by an independent actuary using the projected unit credit method as on the reporting date. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recorded in the statement of profit and loss in the year in which such gains or losses arise.
(iv) Other benefits
Liability for long term employee retention schemes is determined on the basis of actuarial valuation at the year end. Actuarial gains and losses comprise experience adjustments and the effects of changes in actuarial assumptions and are recognised immediately in the statement of profit and loss as income or expense.
Expense in respect of other short term benefits is recognised on the basis of amount paid or payable for the period during which services are rendered by the employees.
63
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
(j) Foreign currency transactions
(i) Initial recognition
Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount, the exchange rate between the reporting currency and the foreign currency at the date of the transaction.
(ii) Subsequent recognition
Foreign currency monetary assets and liabilities are reported using the closing rate as at the reporting date.
Non-monetary items, which are carried in terms of historical cost denominated in a foreign currency, are reported using the exchange rate at the date of the transaction.
(iii) Exchange differences
Exchange differences arising on the settlement of monetary items at rates different from those at which they were initially recorded during the year or reported in previous financial statements, are recognised as income or expense in the year in which they arise, except for exchange differences arising on foreign currency monetary items.
Exchange differences arising on long term foreign currency monetary items in so far as it relates to the acquisition of depreciable capital assets are added to the cost of such assets and in other cases, by transfer to “Foreign Currency Monetary Item Translation Difference Account”, to be amortized over the balance period of such long term foreign currency monetary items or 31 March 2020, whichever is earlier.
(iv) Foreign branches
In respect of integral foreign branches, all revenues, expenses, monetary assets/ liabilities and fixed assets are accounted at the exchange rate prevailing on the date of the transaction. Monetary assets and liabilities are restated at the year end rates and resultant gains or losses are recognised in the statement of profit and loss.
(k) Derivative instruments
The Company uses foreign exchange forward contracts to hedge its exposure towards underlying assets or liability or for highly probable and forecasted transactions. These foreign exchange forward contracts are not used for trading or speculation purposes.
(i) Forward contracts where an underlying asset or liability exists
In such case, the difference between the forward rate and the exchange rate at the inception of the contract is recognised as income or expense over the life of the contract.
(ii) Forward contracts taken for highly probable/ forecast transactions
Such forward exchange contracts are marked to market at the balance sheet date if such mark to market results in exchange loss such exchange loss is recognised in the statement of profit and loss immediately. Any gain is ignored and not recognised in the financial statements in accordance with the principles of prudence enunciated in Accounting Standard 1- Disclosure of Accounting Policies notified under the Companies Act, 1956.
Profit or loss arising on cancellation or renewal of a forward contract is recognised as income or expense in the year in which such cancellation or renewal is made.
(l) Taxation
Tax expense comprises current tax and deferred tax.
(i) Current tax
Provision is made for current income tax liability based on the applicable provisions of the Income Tax Act, 1961 for the income chargeable under the said Act and as per the applicable overseas laws relating to a foreign branch.
(ii) Deferred tax
Deferred income taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which
62
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
Net realisable value is the estimated selling price in the ordinary course of business, less estimated cost to affect the sale.
(iii) Provision for obsolescence and slow moving inventory is made based on management’s best estimates of net realisable value of such inventories.
(g) Government grants
Grants in the nature of contribution towards capital cost of setting up projects are treated as capital reserve and grants in respect of specific fixed assets are adjusted from the cost of the related fixed assets.
(h) Borrowing costs
Borrowing costs directly attributable to acquisition, construction or erection of fixed assets, which necessarily take a substantial period of time (generally 12 months or more) to be ready for the intended use, are capitalised. Capitalisation of borrowing costs ceases when substantially all the activities necessary to prepare the qualifying assets for their intended use are complete.Other borrowing costs are recognised as an expense in the statement of profit and loss in the year in which they are incurred.
(i) Employee benefits
(i) Provident fund and Employees’ state insurance
The Company makes contribution to statutory provident fund which is recognised by the income tax authorities in accordance with Employees Provident Fund and Miscellaneous Provisions Act, 1952 which is a defined contribution plan. These funds are administered through Regional Provident Fund Commissioner and contribution paid or payable is recognised as an expense in the period in which the services are rendered by the employee. The Company has no legal or constructive obligations to pay further contributions after payment of the fixed contribution.
The Company’s contribution to state plans namely Employee’s State Insurance Fund and Employee’s Pension Scheme 1995 is recognised as an expense in the period in which the services are rendered by the employee.
(ii) Gratuity
Gratuity is a post employment benefit and is in the nature of defined benefit plan. The liability recognised in the balance sheet in respect of gratuity is the present value of the defined benefit obligation as at the balance sheet date less the fair value of plan assets, together with adjustments for unrecognised actuarial gains or losses. Gratuity Fund is administered through Life Insurance Corporation of India. The defined benefit obligation is calculated at the balance sheet date on the basis of actuarial valuation by an independent actuary using projected unit credit method. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recorded in the statement of profit and loss in the year in which such gains or losses arise.
(iii) Unavalied leaves
The Company also provides benefit of compensated absences to its employees which are in the nature of long term benefit plan. The compensated absences comprises of vesting as well as non vesting benefit. Liability in respect of compensated absences becoming due and expected to be availed within one year from the balance sheet date is recognised on the basis of undiscounted value of estimated amount required to be paid or estimated value of benefits expected to be availed by the employees. Liability in respect of compensated absences becoming due and expected to be availed more than one year after the balance sheet date is estimated on the basis of an actuarial valuation performed by an independent actuary using the projected unit credit method as on the reporting date. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recorded in the statement of profit and loss in the year in which such gains or losses arise.
(iv) Other benefits
Liability for long term employee retention schemes is determined on the basis of actuarial valuation at the year end. Actuarial gains and losses comprise experience adjustments and the effects of changes in actuarial assumptions and are recognised immediately in the statement of profit and loss as income or expense.
Expense in respect of other short term benefits is recognised on the basis of amount paid or payable for the period during which services are rendered by the employees.
63
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
(j) Foreign currency transactions
(i) Initial recognition
Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount, the exchange rate between the reporting currency and the foreign currency at the date of the transaction.
(ii) Subsequent recognition
Foreign currency monetary assets and liabilities are reported using the closing rate as at the reporting date.
Non-monetary items, which are carried in terms of historical cost denominated in a foreign currency, are reported using the exchange rate at the date of the transaction.
(iii) Exchange differences
Exchange differences arising on the settlement of monetary items at rates different from those at which they were initially recorded during the year or reported in previous financial statements, are recognised as income or expense in the year in which they arise, except for exchange differences arising on foreign currency monetary items.
Exchange differences arising on long term foreign currency monetary items in so far as it relates to the acquisition of depreciable capital assets are added to the cost of such assets and in other cases, by transfer to “Foreign Currency Monetary Item Translation Difference Account”, to be amortized over the balance period of such long term foreign currency monetary items or 31 March 2020, whichever is earlier.
(iv) Foreign branches
In respect of integral foreign branches, all revenues, expenses, monetary assets/ liabilities and fixed assets are accounted at the exchange rate prevailing on the date of the transaction. Monetary assets and liabilities are restated at the year end rates and resultant gains or losses are recognised in the statement of profit and loss.
(k) Derivative instruments
The Company uses foreign exchange forward contracts to hedge its exposure towards underlying assets or liability or for highly probable and forecasted transactions. These foreign exchange forward contracts are not used for trading or speculation purposes.
(i) Forward contracts where an underlying asset or liability exists
In such case, the difference between the forward rate and the exchange rate at the inception of the contract is recognised as income or expense over the life of the contract.
(ii) Forward contracts taken for highly probable/ forecast transactions
Such forward exchange contracts are marked to market at the balance sheet date if such mark to market results in exchange loss such exchange loss is recognised in the statement of profit and loss immediately. Any gain is ignored and not recognised in the financial statements in accordance with the principles of prudence enunciated in Accounting Standard 1- Disclosure of Accounting Policies notified under the Companies Act, 1956.
Profit or loss arising on cancellation or renewal of a forward contract is recognised as income or expense in the year in which such cancellation or renewal is made.
(l) Taxation
Tax expense comprises current tax and deferred tax.
(i) Current tax
Provision is made for current income tax liability based on the applicable provisions of the Income Tax Act, 1961 for the income chargeable under the said Act and as per the applicable overseas laws relating to a foreign branch.
(ii) Deferred tax
Deferred income taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which
64
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
such deferred tax assets can be realised. In respect of carry forward losses and unabsorbed depreciation, deferred tax assets are recognised only to the extent there is a virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such losses can be set off.
(m) Leases
(i) Finance lease
Assets given under finance leases are recognised as receivables at an amount equal to the net investment in the lease and the finance income is recognised based on a constant periodic rate of return on the outstanding net investment in respect of the finance lease.
(ii) Operating lease
Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased assets, are classified as ‘Operating Leases’. Lease rentals in respect of assets taken under operating leases are charged to the statement of profit and loss on a straight line basis over the term of lease.
(n) Stock option plans
Stock options grants to the employees and to the non-executive directors who accepted the grant under the Company’s Stock Option Plans are accounted in accordance with Securities and Exchange Board of India (Employees Stock Option Scheme and Employees Stock Purchase Scheme) Guidelines, 1999. The Company follows the intrinsic value method and accordingly, the excess, if any, of the market price of the underlying equity shares as of the date of the grant of the option over the exercise price of the option, is recognised as employee compensation cost and amortised on a straight line basis over the vesting period.
(o) Impairment of assets
The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount and the reduction is treated as an impairment loss and is recognised in the statement of profit and loss. Where there is any indication that an impairment loss recognised for an asset in prior accounting periods may no longer exist or may have decreased, the Company books a reversal of the impairment loss not exceeding the carrying amount that would have been determined (net of amortisation or depreciation) had no impairment loss been recognised for the asset in prior accounting periods.
(p) Provisions and contingent liabilities
The Company creates a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation.
A disclosure is made for a contingent liability when there is a:
- possible obligation, the existence of which will be confirmed by the occurrence/non-occurrence of one or more uncertain events, not fully with in the control of the Company;
- present obligation, where it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation;
- present obligation, where a reliable estimate cannot be made.
Where there is a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.
(q) Earnings per share
Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares, except where results would be anti-dilutive.
65
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
4 Share capital
Particulars As at 31 December 2013 As at 31 March 2013
Number Amount Number Amount
AuthorisedEquity shares of Rs. 10 each 1,250,000,000 12,500,000,000 1,250,000,000 12,500,000,000
IssuedEquity shares of Rs. 10 each 198,306,104 1,983,061,040 168,306,104 1,683,061,040
Subscribed and fully paid upEquity shares of Rs. 10 each fully paid up 198,306,104 1,983,061,040 168,306,104 1,683,061,040
Total 198,306,104 1,983,061,040 168,306,104 1,683,061,040
(A) Terms and rights attached to equity shares :
The Company has one class of equity shares having par value of Rs. 10 each. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors, if any, is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.
(B) Shares allotted as fully paid up by way of bonus shares during the current reporting period and five years immediately preceding the current reporting period :
(No. of shares)
Particulars 31 December 31 March 31 March 31 March 31 March 31 March 2013 2013 2012 2011 2010 2009
Equity shares allotted as fully - - - - - 25,000 paid up bonus shares bycapitalization of general reserve.
(C) Reconciliation of the number of shares outstanding at beginning and end of the reporting period :
Particulars As at 31 December 2013 As at 31 March 2013
Number Amount Number Amount
Shares outstanding at the beginning of the 168,306,104 1,683,061,040 168,306,104 1,683,061,040period/ year
Add : Shares issued during the period/ year 30,000,000 300,000,000 - -
Less : Shares bought back during the period/ year - - - -
Shares outstanding at the end of the period/ year 198,306,104 1,983,061,040 168,306,104 1,683,061,040
(D) Shareholders holding more than 5 % of equity share capital :
Name of shareholder As at 31 December 2013 As at 31 March 2013
Number of % of holding Number of % of holdingshares held shares held
Deepak Puri and HUF 57,420,141 28.95 27,420,141 16.32
International Finance Corporation* - - 15,076,791 8.96
Electra Partners Mauritius Limited 9,960,345 5.02 9,960,345 5.92
*International Finance Corporation has sold off its entire shareholdings in the secondary market during the current period.
(E) Stock option plans :
The Company has two Stock Option Plans:
(a) Employee Stock Option Plan 2004 and Director’s Stock Option Plan 2005
The Company has granted options to its non-executive directors and employees of the Company and its subsidiaries, to be settled through issue of equity shares.
The Options granted vest over a period of maximum of four years from the date of grant.
64
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
such deferred tax assets can be realised. In respect of carry forward losses and unabsorbed depreciation, deferred tax assets are recognised only to the extent there is a virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such losses can be set off.
(m) Leases
(i) Finance lease
Assets given under finance leases are recognised as receivables at an amount equal to the net investment in the lease and the finance income is recognised based on a constant periodic rate of return on the outstanding net investment in respect of the finance lease.
(ii) Operating lease
Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased assets, are classified as ‘Operating Leases’. Lease rentals in respect of assets taken under operating leases are charged to the statement of profit and loss on a straight line basis over the term of lease.
(n) Stock option plans
Stock options grants to the employees and to the non-executive directors who accepted the grant under the Company’s Stock Option Plans are accounted in accordance with Securities and Exchange Board of India (Employees Stock Option Scheme and Employees Stock Purchase Scheme) Guidelines, 1999. The Company follows the intrinsic value method and accordingly, the excess, if any, of the market price of the underlying equity shares as of the date of the grant of the option over the exercise price of the option, is recognised as employee compensation cost and amortised on a straight line basis over the vesting period.
(o) Impairment of assets
The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount and the reduction is treated as an impairment loss and is recognised in the statement of profit and loss. Where there is any indication that an impairment loss recognised for an asset in prior accounting periods may no longer exist or may have decreased, the Company books a reversal of the impairment loss not exceeding the carrying amount that would have been determined (net of amortisation or depreciation) had no impairment loss been recognised for the asset in prior accounting periods.
(p) Provisions and contingent liabilities
The Company creates a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation.
A disclosure is made for a contingent liability when there is a:
- possible obligation, the existence of which will be confirmed by the occurrence/non-occurrence of one or more uncertain events, not fully with in the control of the Company;
- present obligation, where it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation;
- present obligation, where a reliable estimate cannot be made.
Where there is a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.
(q) Earnings per share
Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares, except where results would be anti-dilutive.
65
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
4 Share capital
Particulars As at 31 December 2013 As at 31 March 2013
Number Amount Number Amount
AuthorisedEquity shares of Rs. 10 each 1,250,000,000 12,500,000,000 1,250,000,000 12,500,000,000
IssuedEquity shares of Rs. 10 each 198,306,104 1,983,061,040 168,306,104 1,683,061,040
Subscribed and fully paid upEquity shares of Rs. 10 each fully paid up 198,306,104 1,983,061,040 168,306,104 1,683,061,040
Total 198,306,104 1,983,061,040 168,306,104 1,683,061,040
(A) Terms and rights attached to equity shares :
The Company has one class of equity shares having par value of Rs. 10 each. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors, if any, is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.
(B) Shares allotted as fully paid up by way of bonus shares during the current reporting period and five years immediately preceding the current reporting period :
(No. of shares)
Particulars 31 December 31 March 31 March 31 March 31 March 31 March 2013 2013 2012 2011 2010 2009
Equity shares allotted as fully - - - - - 25,000 paid up bonus shares bycapitalization of general reserve.
(C) Reconciliation of the number of shares outstanding at beginning and end of the reporting period :
Particulars As at 31 December 2013 As at 31 March 2013
Number Amount Number Amount
Shares outstanding at the beginning of the 168,306,104 1,683,061,040 168,306,104 1,683,061,040period/ year
Add : Shares issued during the period/ year 30,000,000 300,000,000 - -
Less : Shares bought back during the period/ year - - - -
Shares outstanding at the end of the period/ year 198,306,104 1,983,061,040 168,306,104 1,683,061,040
(D) Shareholders holding more than 5 % of equity share capital :
Name of shareholder As at 31 December 2013 As at 31 March 2013
Number of % of holding Number of % of holdingshares held shares held
Deepak Puri and HUF 57,420,141 28.95 27,420,141 16.32
International Finance Corporation* - - 15,076,791 8.96
Electra Partners Mauritius Limited 9,960,345 5.02 9,960,345 5.92
*International Finance Corporation has sold off its entire shareholdings in the secondary market during the current period.
(E) Stock option plans :
The Company has two Stock Option Plans:
(a) Employee Stock Option Plan 2004 and Director’s Stock Option Plan 2005
The Company has granted options to its non-executive directors and employees of the Company and its subsidiaries, to be settled through issue of equity shares.
The Options granted vest over a period of maximum of four years from the date of grant.
66
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
In case of Employee Stock Option Plan-2004, the exercise price shall be as follows:-(i) Normal allocation:- Rs. 125 per option or prevailing market price, whichever is higher.(ii) Special allocation:- 50% of the options at Rs. 125 per option or prevailing market price, whichever is higher and the balance 50% of the options at Rs. 170 per option or prevailing market price, whichever is higher.In case of Directors’ Stock Option Plan, the exercise price shall be Rs. 170 per option or prevailing market price, whichever is higher.
Two options granted before the record date under the above plans entitles the holder to three equity shares of the Company.
Reconciliation of number of options granted, exercised and cancelled/ lapsed during the period :
Particulars For the period ended31 December 2013 31 March 2013
Number Weighted Number Weightedaverage price average price
Options outstanding at beginning of period/ year 654,450 313.02 1,233,950 257.39
Add: Options granted - - - -
Less: Options exercised - - - -
Less: Options cancelled 326,400 254.98 284,800 167.44
Less: Options lapsed 8,400 208.87 294,700 220.79
Less: Options forfeited - - - -
Options outstanding at the end of period/ year 319,650 254.57 654,450 313.02
Option exercisable at the end of period/ year 319,650 254.57 629,050 318.82
The options outstanding at the end of period had exercise price in the range of Rs. 125 to Rs. 491.90 (previous year Rs. 125 to Rs. 491.90) and a weighted average remaining contractual life of 1.56 years (previous year 2.04 years)
(b) Employee Stock Option Plan-2009
The Company established a stock option plan called “ Moser Baer India Limited Stock Option Plan 2009”. The plan was setup to offer and grant stock options, in one or more tranches, to employees and directors of the Company as the compensation committee of the Company may determine. The granted options shall be settled through issue of equity shares. The exercise price shall be as follows:- (i) Normal allocation:- Market price at the date of grant(ii) Special allocation:- 50% of the options at Rs. 125 per option or prevailing market price, whichever is higher and the balance 50% of the options at Rs. 170 per option or prevailing market price, whichever is higher. All options, whether vested or unvested, granted to grantee shall in any case expire after a period of seven years from the offer date.
During the current period, the Company has issued Nil (previous year Nil) options to eligible employees. No options have been exercised during the period.
Reconciliation of number of options granted, exercised and cancelled/ lapsed during the period :
Particulars For the period ended For the year ended31 December 2013 31 March 2013
Number Weighted Number Weightedaverage price average price
Options outstanding at beginning of period/ year 1,532,237 76.77 2,081,204 76.82
Add: Options granted - - - -
Less: Options exercised - - - -
Less: Options cancelled 267,196 75.68 548,967 76.98
Less: Options lapsed - - - -
Less: Options forfeited - - - -
Options outstanding at the end of period/ year 1,265,041 77.00 1,532,237 76.77
Option exercisable at the end of period/ year 837,395 77.25 926,874 77.98
The options outstanding at the end of period had exercise price in the range of Rs. 46.30 to Rs. 170.00 (previous yearRs. 46.30 to Rs. 170.00) and a weighted average remaining contractual life of 3.62 years (previous year 4.37 years).
For the year ended
67
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
(c) The impact on the loss of the Company for the period ended 31 December 2013 and the basic and diluted earnings per share had the Company followed the fair value method of accounting for stock options is set out below:
Particulars For the period ended For the year ended31 December 2013 31 March 2013
Loss after tax as per statement of profit and loss (a) (4,466,627,030) (4,591,663,670)
Add: Employee stock compensation expenses as per intrinsic - - value method
Add: Reversal of employee stock compensation expenses as per fair 49,861,854 48,041,866 value method on account of lapse of scheme
Loss after tax recomputed for recognition of employee stock compensation (4,416,765,176) (4,543,621,804)expenses under fair value method (b)
Loss per share based on earning as per (a) above:
- Basic (24.07) (27.28)
- Diluted (24.07) (27.28)
Loss per share had fair value method been employed for accounting ofemployee stock options as per (b) above:
- Basic (23.80) (27.00)
- Diluted (23.80) (27.00)
Fair values used for above computations have been calculated by taking into account the weighted average vesting period of the options.
5 Reserves and surplus
Particulars As at As at31 December 2013 31 March 2013
(a) Capital reserve
Opening balance 181,440,000 181,440,000
Add: Additions during the period/ year - -
Less: Written back in current period/ year - -
Closing balance 181,440,000 181,440,000
(b) Securities premium account
Opening balance 6,533,172,317 7,139,740,803
Less: Premium on redemption of foreign currency convertible bonds 776,861,039 606,568,486
Closing balance 5,756,311,278 6,533,172,317
(c) Foreign currency monetary items translation difference account
Opening balance - (97,508,432)
Add: Exchange loss of long term foreign currency liabilities - (417,857,691)
Add: Amortised in statement of profit and loss - 515,366,123
Closing balance - -
(d) Surplus as per statement of profit and loss
Opening balance (4,907,519,614) (315,855,944)
Add: Net loss for the period/ year (4,466,627,030) (4,591,663,670)
Closing balance (9,374,146,644) (4,907,519,614)
Total (3,436,395,366) 1,807,092,703
6 Share application money pending allotment represents contribution received from promoters under the corporate debt restructuring scheme. Subsequent to 31 December 2013, the promoter has further infused Rs. 37,000,000 pursuant to which the Company on 28 February 2014 has issued 10,000,000 equity shares of Rs. 10 each. The Company has sufficient authorized capital to cover the share capital amount on allotment of above shares.
66
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
In case of Employee Stock Option Plan-2004, the exercise price shall be as follows:-(i) Normal allocation:- Rs. 125 per option or prevailing market price, whichever is higher.(ii) Special allocation:- 50% of the options at Rs. 125 per option or prevailing market price, whichever is higher and the balance 50% of the options at Rs. 170 per option or prevailing market price, whichever is higher.In case of Directors’ Stock Option Plan, the exercise price shall be Rs. 170 per option or prevailing market price, whichever is higher.
Two options granted before the record date under the above plans entitles the holder to three equity shares of the Company.
Reconciliation of number of options granted, exercised and cancelled/ lapsed during the period :
Particulars For the period ended31 December 2013 31 March 2013
Number Weighted Number Weightedaverage price average price
Options outstanding at beginning of period/ year 654,450 313.02 1,233,950 257.39
Add: Options granted - - - -
Less: Options exercised - - - -
Less: Options cancelled 326,400 254.98 284,800 167.44
Less: Options lapsed 8,400 208.87 294,700 220.79
Less: Options forfeited - - - -
Options outstanding at the end of period/ year 319,650 254.57 654,450 313.02
Option exercisable at the end of period/ year 319,650 254.57 629,050 318.82
The options outstanding at the end of period had exercise price in the range of Rs. 125 to Rs. 491.90 (previous year Rs. 125 to Rs. 491.90) and a weighted average remaining contractual life of 1.56 years (previous year 2.04 years)
(b) Employee Stock Option Plan-2009
The Company established a stock option plan called “ Moser Baer India Limited Stock Option Plan 2009”. The plan was setup to offer and grant stock options, in one or more tranches, to employees and directors of the Company as the compensation committee of the Company may determine. The granted options shall be settled through issue of equity shares. The exercise price shall be as follows:- (i) Normal allocation:- Market price at the date of grant(ii) Special allocation:- 50% of the options at Rs. 125 per option or prevailing market price, whichever is higher and the balance 50% of the options at Rs. 170 per option or prevailing market price, whichever is higher. All options, whether vested or unvested, granted to grantee shall in any case expire after a period of seven years from the offer date.
During the current period, the Company has issued Nil (previous year Nil) options to eligible employees. No options have been exercised during the period.
Reconciliation of number of options granted, exercised and cancelled/ lapsed during the period :
Particulars For the period ended For the year ended31 December 2013 31 March 2013
Number Weighted Number Weightedaverage price average price
Options outstanding at beginning of period/ year 1,532,237 76.77 2,081,204 76.82
Add: Options granted - - - -
Less: Options exercised - - - -
Less: Options cancelled 267,196 75.68 548,967 76.98
Less: Options lapsed - - - -
Less: Options forfeited - - - -
Options outstanding at the end of period/ year 1,265,041 77.00 1,532,237 76.77
Option exercisable at the end of period/ year 837,395 77.25 926,874 77.98
The options outstanding at the end of period had exercise price in the range of Rs. 46.30 to Rs. 170.00 (previous yearRs. 46.30 to Rs. 170.00) and a weighted average remaining contractual life of 3.62 years (previous year 4.37 years).
For the year ended
67
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
(c) The impact on the loss of the Company for the period ended 31 December 2013 and the basic and diluted earnings per share had the Company followed the fair value method of accounting for stock options is set out below:
Particulars For the period ended For the year ended31 December 2013 31 March 2013
Loss after tax as per statement of profit and loss (a) (4,466,627,030) (4,591,663,670)
Add: Employee stock compensation expenses as per intrinsic - - value method
Add: Reversal of employee stock compensation expenses as per fair 49,861,854 48,041,866 value method on account of lapse of scheme
Loss after tax recomputed for recognition of employee stock compensation (4,416,765,176) (4,543,621,804)expenses under fair value method (b)
Loss per share based on earning as per (a) above:
- Basic (24.07) (27.28)
- Diluted (24.07) (27.28)
Loss per share had fair value method been employed for accounting ofemployee stock options as per (b) above:
- Basic (23.80) (27.00)
- Diluted (23.80) (27.00)
Fair values used for above computations have been calculated by taking into account the weighted average vesting period of the options.
5 Reserves and surplus
Particulars As at As at31 December 2013 31 March 2013
(a) Capital reserve
Opening balance 181,440,000 181,440,000
Add: Additions during the period/ year - -
Less: Written back in current period/ year - -
Closing balance 181,440,000 181,440,000
(b) Securities premium account
Opening balance 6,533,172,317 7,139,740,803
Less: Premium on redemption of foreign currency convertible bonds 776,861,039 606,568,486
Closing balance 5,756,311,278 6,533,172,317
(c) Foreign currency monetary items translation difference account
Opening balance - (97,508,432)
Add: Exchange loss of long term foreign currency liabilities - (417,857,691)
Add: Amortised in statement of profit and loss - 515,366,123
Closing balance - -
(d) Surplus as per statement of profit and loss
Opening balance (4,907,519,614) (315,855,944)
Add: Net loss for the period/ year (4,466,627,030) (4,591,663,670)
Closing balance (9,374,146,644) (4,907,519,614)
Total (3,436,395,366) 1,807,092,703
6 Share application money pending allotment represents contribution received from promoters under the corporate debt restructuring scheme. Subsequent to 31 December 2013, the promoter has further infused Rs. 37,000,000 pursuant to which the Company on 28 February 2014 has issued 10,000,000 equity shares of Rs. 10 each. The Company has sufficient authorized capital to cover the share capital amount on allotment of above shares.
68
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
7 Long term borrowings
Particulars As at As at31 December 2013 31 March 2013
Secured
Term loans
(a) Rupee loans from banks
Term loans 8,146,512,000 8,701,837,053
Working capital term loans 966,743,000 1,108,448,000
Funded interest term loans 209,468,454 618,581,782
(b) Rupee loans from others
Term loans 284,942,949 304,370,877
Working capital term loans 107,680,250 123,464,000
Funded interest term loans 4,939,734 25,912,877
Total 9,720,286,387 10,882,614,589
(Also refer note 47 for defaults in repayment of dues to the banks and a financial institution)
Note:
(i) Secured loans
(a) Nature of security and terms of repayment for secured borrowings as at 31 December 2013:
Particulars As at 31December 2013 31 March 2013
Term loans under corporate
debt restructuring fixed assets. installments after
(ii) Second pari passu charge on moratorium of 2 years from
current assets of the Company. cut off date i.e. 30
(iii) Pledge of 100% shareholding of November 2011
the promoters of the Company. commencing from
(iv) Personal guarantee of Mr. Deepak February 2014
Working capital term loans 1,399,900,000 1,399,900,000 Puri and Mrs. Nita Puri. Repayable in 16 quarterly
(v) Negative lien on land of Moser Baer installments after
Infrastructure and Developer Limited moratorium of 2 years from
at Chennai on pari passu basis. cut off date i.e. 30
(vi) Corporate guarantee of Moser Baer November 2011,
Infrastructure and Developers Limited. commencing from February
(subsidiary of the Company that owns 2014
Funded interest term loans 1,231,469,623 1,464,635,147 the rights to the Chennai land). Repayable in 7 quarterly
(vii) Pledge of shares of Moser Baer installments commencing
Infrastructure and Developers Limited. from 30 September 2013
Term loans - other - 18,750,000 First pari passu charge on fixed assets Repayable in 16 quarterly
installments effective from
May 2008
Total 12,212,568,428 12,464,483,952
Less : Current portion
of long term debts 2,492,282,041 1,581,869,363
Net long term borrowings 9,720,286,387 10,882,614,589
(b) Interest rates
- Interest rate on long term borrowings varies from 10.25% to 11% p.a. (previous year 10.25% to 11% p.a.)
(c) Corporate debt restructuring scheme
During the year ended 31 March 2013, the Company accounted for corporate debt restructuring scheme (reclassifications and interest calculations) in the books for the year ended 31 March 2013. As per the corporate debt restructuring scheme, Company recorded amounts receivable from banks on account of installment paid prior to implementation of corporate debt restructuring, excess interest paid by the Company and release of additional limits as per the scheme. As of 31 December
As at Security Terms of repayment
9,581,198,805 9,581,198,805 (i) First pari passu charge on Repayable in 32 quarterly
69
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
2013, a total of Rs. 855,841,627 (previous year Rs. 1,334,391,231) is outstanding to be received from the banks. Recovery of this balance is subject to completion of reconciliation of corporate debt restructuring adjustments with some of the lender banks. Based on acceptance of management’s calculation by certain lender banks, the management is of the view there will not be any material adjustment to this receivable.
The Borrowers and the CDR Lenders executed a MRA during the previous year. The MRA as well as the provisions of the Master Circular on Corporate Debt Restructuring issued by the Reserve Bank of India, give a right to the CDR Lenders to get a recompense of their waivers and sacrifices made as part of the CDR Proposal. The recompense payable by the borrowers is contingent on various factors including improved performance of the borrowers and many other conditions, the outcome of which currently is materially uncertain and hence the proportionate amount payable as recompense has been treated as a contingent liability. The aggregate present value of the sacrifice made/ to be made by CDR Lenders as per the MRA is approximately Rs 160.72 crore for the Company.
8 Other long term liabilities
Particulars As at As at31 December 2013 31 March 2013
Deferred government grant (refer note below) 35,000,000 35,000,000
Security deposits from
- Subsidiaries 1,715,000,000 1,715,000,000
- Others 12,200,000 12,200,000
Retention money 2,080,731 2,210,731
Lease equalisation reserve 44,535,208 37,647,449
Total 1,808,815,939 1,802,058,180
Note :
Ministry of New and Renewable Energy of the Government of India, as part of its Jawaharlal Nehru Nation Solar Mission 2010 sanctioned a Research and Development (‘RandD’) grant to the Company for its project ‘Development of CIGS solar cell pilot plant to achieve grid parity solar cells’. One of the objectives of the grant is to develop low cost solar cell module with an aim to meet grid parity by using Cu(InGa)Se2 solar cells. During the year ended 31 March 2011, the Company received RandD grant of Rs 35,000,000 out of the total grant of Rs 71,050,000 being 50 % of the total project equipment cost of Rs 142,100,000. Pending acquisition of the equipment, the grant received has been disclosed in the financial statements as ‘Government Grant’ which shall be adjusted to the cost of specific fixed assets.
9 Long term provisions
Particulars As at As at31 December 2013 31 March 2013
Provision for employee benefits
Gratuity (refer note 43) 158,678,697 138,044,998
Unavailed leave (refer note 43) 74,784,777 81,232,141
Key resource bonus and deferred salary (refer note below) 185,859 7,044,642
Total 233,649,333 226,321,781
The following is the movement in provisions above from the beginning to the close of the reporting period:
Particulars Key resource bonus and deferred salary
For the period ended For the year ended
31 December 2013 31 March 2013
Balance as at the beginning of the period/ year 17,786,327 40,631,914
Add: Provision made during the period/ year 19,876,362 19,029,825
Less: Paid/ written back during the period/ year (36,312,500) (41,875,412)
Balance as at the end of the period/ year 1,350,189 17,786,327
Less: Amount classified under short term provisions 1,164,330 10,741,685
Balance at the end of the period/ year 185,859 7,044,642
68
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
7 Long term borrowings
Particulars As at As at31 December 2013 31 March 2013
Secured
Term loans
(a) Rupee loans from banks
Term loans 8,146,512,000 8,701,837,053
Working capital term loans 966,743,000 1,108,448,000
Funded interest term loans 209,468,454 618,581,782
(b) Rupee loans from others
Term loans 284,942,949 304,370,877
Working capital term loans 107,680,250 123,464,000
Funded interest term loans 4,939,734 25,912,877
Total 9,720,286,387 10,882,614,589
(Also refer note 47 for defaults in repayment of dues to the banks and a financial institution)
Note:
(i) Secured loans
(a) Nature of security and terms of repayment for secured borrowings as at 31 December 2013:
Particulars As at 31December 2013 31 March 2013
Term loans under corporate
debt restructuring fixed assets. installments after
(ii) Second pari passu charge on moratorium of 2 years from
current assets of the Company. cut off date i.e. 30
(iii) Pledge of 100% shareholding of November 2011
the promoters of the Company. commencing from
(iv) Personal guarantee of Mr. Deepak February 2014
Working capital term loans 1,399,900,000 1,399,900,000 Puri and Mrs. Nita Puri. Repayable in 16 quarterly
(v) Negative lien on land of Moser Baer installments after
Infrastructure and Developer Limited moratorium of 2 years from
at Chennai on pari passu basis. cut off date i.e. 30
(vi) Corporate guarantee of Moser Baer November 2011,
Infrastructure and Developers Limited. commencing from February
(subsidiary of the Company that owns 2014
Funded interest term loans 1,231,469,623 1,464,635,147 the rights to the Chennai land). Repayable in 7 quarterly
(vii) Pledge of shares of Moser Baer installments commencing
Infrastructure and Developers Limited. from 30 September 2013
Term loans - other - 18,750,000 First pari passu charge on fixed assets Repayable in 16 quarterly
installments effective from
May 2008
Total 12,212,568,428 12,464,483,952
Less : Current portion
of long term debts 2,492,282,041 1,581,869,363
Net long term borrowings 9,720,286,387 10,882,614,589
(b) Interest rates
- Interest rate on long term borrowings varies from 10.25% to 11% p.a. (previous year 10.25% to 11% p.a.)
(c) Corporate debt restructuring scheme
During the year ended 31 March 2013, the Company accounted for corporate debt restructuring scheme (reclassifications and interest calculations) in the books for the year ended 31 March 2013. As per the corporate debt restructuring scheme, Company recorded amounts receivable from banks on account of installment paid prior to implementation of corporate debt restructuring, excess interest paid by the Company and release of additional limits as per the scheme. As of 31 December
As at Security Terms of repayment
9,581,198,805 9,581,198,805 (i) First pari passu charge on Repayable in 32 quarterly
69
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
2013, a total of Rs. 855,841,627 (previous year Rs. 1,334,391,231) is outstanding to be received from the banks. Recovery of this balance is subject to completion of reconciliation of corporate debt restructuring adjustments with some of the lender banks. Based on acceptance of management’s calculation by certain lender banks, the management is of the view there will not be any material adjustment to this receivable.
The Borrowers and the CDR Lenders executed a MRA during the previous year. The MRA as well as the provisions of the Master Circular on Corporate Debt Restructuring issued by the Reserve Bank of India, give a right to the CDR Lenders to get a recompense of their waivers and sacrifices made as part of the CDR Proposal. The recompense payable by the borrowers is contingent on various factors including improved performance of the borrowers and many other conditions, the outcome of which currently is materially uncertain and hence the proportionate amount payable as recompense has been treated as a contingent liability. The aggregate present value of the sacrifice made/ to be made by CDR Lenders as per the MRA is approximately Rs 160.72 crore for the Company.
8 Other long term liabilities
Particulars As at As at31 December 2013 31 March 2013
Deferred government grant (refer note below) 35,000,000 35,000,000
Security deposits from
- Subsidiaries 1,715,000,000 1,715,000,000
- Others 12,200,000 12,200,000
Retention money 2,080,731 2,210,731
Lease equalisation reserve 44,535,208 37,647,449
Total 1,808,815,939 1,802,058,180
Note :
Ministry of New and Renewable Energy of the Government of India, as part of its Jawaharlal Nehru Nation Solar Mission 2010 sanctioned a Research and Development (‘RandD’) grant to the Company for its project ‘Development of CIGS solar cell pilot plant to achieve grid parity solar cells’. One of the objectives of the grant is to develop low cost solar cell module with an aim to meet grid parity by using Cu(InGa)Se2 solar cells. During the year ended 31 March 2011, the Company received RandD grant of Rs 35,000,000 out of the total grant of Rs 71,050,000 being 50 % of the total project equipment cost of Rs 142,100,000. Pending acquisition of the equipment, the grant received has been disclosed in the financial statements as ‘Government Grant’ which shall be adjusted to the cost of specific fixed assets.
9 Long term provisions
Particulars As at As at31 December 2013 31 March 2013
Provision for employee benefits
Gratuity (refer note 43) 158,678,697 138,044,998
Unavailed leave (refer note 43) 74,784,777 81,232,141
Key resource bonus and deferred salary (refer note below) 185,859 7,044,642
Total 233,649,333 226,321,781
The following is the movement in provisions above from the beginning to the close of the reporting period:
Particulars Key resource bonus and deferred salary
For the period ended For the year ended
31 December 2013 31 March 2013
Balance as at the beginning of the period/ year 17,786,327 40,631,914
Add: Provision made during the period/ year 19,876,362 19,029,825
Less: Paid/ written back during the period/ year (36,312,500) (41,875,412)
Balance as at the end of the period/ year 1,350,189 17,786,327
Less: Amount classified under short term provisions 1,164,330 10,741,685
Balance at the end of the period/ year 185,859 7,044,642
70
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
10 Short term borrowings
Particulars As at As at
31 December 2013 31 March 2013
Short term loans (secured)
(a) From banks
- Secured by first pari passu charge on all current assets of the Company 6,363,927,520 6,141,260,238and further by way of second charge on all fixed assets of the Company (refer note below)
- Secured by lien on fixed deposits - 46,005,052
(b) From others
- Secured by first pari passu charge on all current assets of the Company 446,500,000 483,081,714 and further by way of second charge on all fixed assets of the Company(refer note below)
Total 6,810,427,520 6,670,347,004
Notes :
Short term loans outstanding as at 31 December 2013 are further secured by:
1. Pledge of 100% shareholding of the promoters of the Company.
2. Personal guarantee of Mr. Deepak Puri and Mrs. Nita Puri.
3. Negative lien on land of Moser Baer Infrastructure and Developers Limited at Chennai on pari passu basis.
4. Corporate guarantee of Moser Baer Infrastructure and Developers Limited (subsidiary of the Company that owns the rights to the Chennai land).
5. Pledge of shares of Moser Baer Infrastructure and Developers Limited.
11 Trade payables
Particulars As at As at 31 December 2013 31 March 2013
Acceptances 854,745,146 1,002,591,556
Trade creditors
- Dues to micro small and medium enterprises (refer note 46) 70,647,794 64,445,555
- Dues to others 2,158,661,463 2,042,721,334
Total 3,084,054,403 3,109,758,445
12 Other current liabilities
Particulars As at As at 31 December 2013 31 March 2013
Current maturities of long term loans 2,492,282,041 1,581,869,363
Foreign currency convertible bonds (refer note 44(d)) 5,471,955,000 4,805,107,500
Premium on redemption on foreign currency convertible bonds (refer note 44(b)) 2,032,527,592 1,784,830,756
Interest accrued but not due on borrowings 228,379 830,796
Interest accrued and due on borrowings 363,645,200 199,539,615
Income received in advance 17,855,039 11,155,804
Unpaid dividends 2,940,573 3,302,623
Others
- Creditors for capital goods 80,770,556 97,693,188
- Employee benefits payable 128,589,688 173,622,948
- Statutory dues 82,693,185 75,262,365
- Security deposits received 2,882,951 3,272,951
- Retention money 45,139,930 45,139,930
- Book overdraft 45,932,358 -
- Other accrued liabilities 30,583,883 28,914,173
Total 10,798,026,375 8,810,542,012
71
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
13 Short term provisions
Particulars As at As at 31 December 2013 31 March 2013
(a) Provision for employee benefits
Unavailed leaves 13,818,545 10,216,548
Key resource bonus and deferred salary (refer note 9) 1,164,330 10,741,685
(b) Others
Provision for taxation - 1,869,939
Provision for warranty (refer note below) 24,615,067 23,784,301
Provision for other probable obligations (refer note below) 439,212,610 412,503,835
Provision for redemption of foreign currency convertible bonds (refer note 44(b)) 1,144,052,106 614,887,903
Total 1,622,862,658 1,074,004,211
Note :
The following is the movement in provisions above from the beginning to the close of the reporting period:
Particulars Warranty* Probable obligations**
For the period ended For the year ended For the period ended For the year ended31 December 2013 31 March 2013 31 December 2013 31 March 2013
Balance at the beginning of the period/ year 23,784,301 5,847,477 412,503,835 377,054,006
Add: Provision made during the period/ year 2,247,485 22,585,729 26,708,775 35,449,829
Less: Utilised/ written back during the period/ year (1,416,719) (4,648,905) - -
Balance at the end of the 24,615,067 23,784,301 439,212,610 412,503,835 period/ year
* Warranty provision relate to the estimated outflow in respect of warranty for products sold by the Company. Due to the very nature of such costs, it is not possible to estimate the timing/uncertainties relating to their outflows as well as expense from such estimates.
** Probable obligations provision relates to the estimated outflow in respect of possible liabilities expected to arise in future. As per notification no. 22/2006 of Central Excise, the Company has to pay additional custom duty on its local sales, if the goods sold are exempted from payment of sales tax or value added tax. One of the units of the Company is exempt from payment of local sales tax and hence the department has disputed the same and demanded the duty on the sale of such goods. The Company has recorded the liability for the amount demanded and is accruing the interest on the same quarterly. Due to very nature of such costs, it is not possible to estimate the timing / uncertainties relating to their outflows as well as expense from such estimates, hence considered as short term in nature.
70
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
10 Short term borrowings
Particulars As at As at
31 December 2013 31 March 2013
Short term loans (secured)
(a) From banks
- Secured by first pari passu charge on all current assets of the Company 6,363,927,520 6,141,260,238and further by way of second charge on all fixed assets of the Company (refer note below)
- Secured by lien on fixed deposits - 46,005,052
(b) From others
- Secured by first pari passu charge on all current assets of the Company 446,500,000 483,081,714 and further by way of second charge on all fixed assets of the Company(refer note below)
Total 6,810,427,520 6,670,347,004
Notes :
Short term loans outstanding as at 31 December 2013 are further secured by:
1. Pledge of 100% shareholding of the promoters of the Company.
2. Personal guarantee of Mr. Deepak Puri and Mrs. Nita Puri.
3. Negative lien on land of Moser Baer Infrastructure and Developers Limited at Chennai on pari passu basis.
4. Corporate guarantee of Moser Baer Infrastructure and Developers Limited (subsidiary of the Company that owns the rights to the Chennai land).
5. Pledge of shares of Moser Baer Infrastructure and Developers Limited.
11 Trade payables
Particulars As at As at 31 December 2013 31 March 2013
Acceptances 854,745,146 1,002,591,556
Trade creditors
- Dues to micro small and medium enterprises (refer note 46) 70,647,794 64,445,555
- Dues to others 2,158,661,463 2,042,721,334
Total 3,084,054,403 3,109,758,445
12 Other current liabilities
Particulars As at As at 31 December 2013 31 March 2013
Current maturities of long term loans 2,492,282,041 1,581,869,363
Foreign currency convertible bonds (refer note 44(d)) 5,471,955,000 4,805,107,500
Premium on redemption on foreign currency convertible bonds (refer note 44(b)) 2,032,527,592 1,784,830,756
Interest accrued but not due on borrowings 228,379 830,796
Interest accrued and due on borrowings 363,645,200 199,539,615
Income received in advance 17,855,039 11,155,804
Unpaid dividends 2,940,573 3,302,623
Others
- Creditors for capital goods 80,770,556 97,693,188
- Employee benefits payable 128,589,688 173,622,948
- Statutory dues 82,693,185 75,262,365
- Security deposits received 2,882,951 3,272,951
- Retention money 45,139,930 45,139,930
- Book overdraft 45,932,358 -
- Other accrued liabilities 30,583,883 28,914,173
Total 10,798,026,375 8,810,542,012
71
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
13 Short term provisions
Particulars As at As at 31 December 2013 31 March 2013
(a) Provision for employee benefits
Unavailed leaves 13,818,545 10,216,548
Key resource bonus and deferred salary (refer note 9) 1,164,330 10,741,685
(b) Others
Provision for taxation - 1,869,939
Provision for warranty (refer note below) 24,615,067 23,784,301
Provision for other probable obligations (refer note below) 439,212,610 412,503,835
Provision for redemption of foreign currency convertible bonds (refer note 44(b)) 1,144,052,106 614,887,903
Total 1,622,862,658 1,074,004,211
Note :
The following is the movement in provisions above from the beginning to the close of the reporting period:
Particulars Warranty* Probable obligations**
For the period ended For the year ended For the period ended For the year ended31 December 2013 31 March 2013 31 December 2013 31 March 2013
Balance at the beginning of the period/ year 23,784,301 5,847,477 412,503,835 377,054,006
Add: Provision made during the period/ year 2,247,485 22,585,729 26,708,775 35,449,829
Less: Utilised/ written back during the period/ year (1,416,719) (4,648,905) - -
Balance at the end of the 24,615,067 23,784,301 439,212,610 412,503,835 period/ year
* Warranty provision relate to the estimated outflow in respect of warranty for products sold by the Company. Due to the very nature of such costs, it is not possible to estimate the timing/uncertainties relating to their outflows as well as expense from such estimates.
** Probable obligations provision relates to the estimated outflow in respect of possible liabilities expected to arise in future. As per notification no. 22/2006 of Central Excise, the Company has to pay additional custom duty on its local sales, if the goods sold are exempted from payment of sales tax or value added tax. One of the units of the Company is exempt from payment of local sales tax and hence the department has disputed the same and demanded the duty on the sale of such goods. The Company has recorded the liability for the amount demanded and is accruing the interest on the same quarterly. Due to very nature of such costs, it is not possible to estimate the timing / uncertainties relating to their outflows as well as expense from such estimates, hence considered as short term in nature.
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70,3
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6,4
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- 76,7
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20
Tech
nic
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ow
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w438,3
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271,8
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Pre
vio
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380,7
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39,1
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177,1
05,9
14
No
tes:
1.
Ad
dit
ion
s t
o p
lan
t an
d m
ach
inery
in
clu
de e
xch
an
ge lo
ss o
f R
s. N
il (p
revi
ou
s y
ear
exc
han
ge lo
ss o
f R
s. 70,9
14,5
78).
2.
Gro
ss b
lock
of
fixe
d a
ssets
in
clu
de R
s. 435,4
43,4
06 (p
revi
ou
s y
ear
Rs. 435,4
43,4
06) re
lati
ng
to
th
e S
EZ d
ivis
ion
of
the C
om
pan
y.
73
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
15 Non current investments
Particulars As at As at 31 December 2013 31 March 2013
Trade investments
(1) Investment in equity shares
(a) Subsidiaries
European Optic Media Technology GMBH
Share capital of ¤ 2,025,000 (previous year ¤ 2,025,000) includes reserve capital of Rs. 111,689,796 (previous year Rs. 111,689,796) 222,953,546 222,953,546
Less: Provision for diminution (168,852,376) 54,101,170 (168,852,376) 54,101,170
Peraround Limited
1,524,761 (previous year 1,524,761) shares of ¤1.71 each 154,618,741 154,618,741
Photovoltaic Holdings Limited
7,086,860 (previous year 7,086,860) equity shares of GBP 1 each 498,080,000 498,080,000
Moser Baer SEZ Developer Limited
3,000,000 (previous year 3,000,000) equity shares of Rs. 10 each 30,000,000 30,000,000
Moser Baer Entertainment Limited
270,000 (previous year 270,000) equity shares of Rs. 10 each 2,700,000 2,700,000
6,000,000 (previous year 6,000,000) equity shares of Rs. 10 each issued at premium of Rs. 90 each 600,000,000 600,000,000
Moser Baer Investments Limited
1,400,000 (previous year 1,350,000 ) equity shares of Rs. 10 each 14,000,000 14,000,000
(b) Associates
Global Data Media FZ-LLC
7,194 (previous year 7,194) shares of AED 1,000 each 92,532,185 92,532,185
Less: Provision for diminution (92,532,185) - (92,532,185) -
Moser Baer Infrastructure Limited
3,430,000 (previous year 3,430,000) equity shares of Rs. 10 each 34,300,000 34,300,000
Less: Provision for diminution (34,300,000) - (34,300,000) -
(c) Others
Lumen Engineering Private Limited
102,000 (previous year 102,000) equity shares of Rs. 10 each 1,020,000 1,020,000
Moser Baer Projects Private Limited
510,000 (previous year 510,000) equity shares of Rs. 10 each 5,100,000 5,100,000
Capco Luxembourg S.A.R.L.
(1) (previous year 1) equity share of ¤ 125 each 4,961 4,961
1,359,624,872 1,359,624,872
(2) Investments in preference shares
MO
SE
R B
AE
R IN
DIA
LIM
ITE
DS
um
mary
of si
gn
ific
an
t acco
un
tin
g p
olic
ies
an
d o
ther
exp
lan
ato
ry in
form
ati
on
s to
th
e fin
an
cia
l sta
tem
en
ts fo
r th
e n
ine
mo
nth
s p
eri
od
en
ded
31 D
ecem
ber 2013
(All
am
ou
nts
in ru
pe
es,
un
less
oth
erw
ise
sta
ted
)
72
14
Fix
ed
ass
ets
Part
icu
lars
G
ross
blo
ck
Accu
mu
late
d d
ep
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tio
n a
nd
am
ort
isati
on
Net
blo
ck
Bala
nce a
s at
Ad
dit
ion
sD
ele
tio
ns
Bala
nce a
s at
Bala
nce a
s at
Ch
arg
e f
or
Ad
just
men
t u
po
nB
ala
nce a
s at
Bala
nce a
s at
Bala
nce a
s at
1 A
pri
l 2013
31 D
ece
mb
er
2013
1 A
pri
l 2013
th
e p
eri
od
dele
tio
ns
31 D
ece
mb
er
2013
31 D
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31 M
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h 2
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Tan
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le a
ssets
Leaseh
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d273,6
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--
273,6
66,5
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32,2
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- 34,4
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239,2
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71
Bu
ildin
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3,3
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--
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82,0
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nt
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62,7
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1,4
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23
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82
35,2
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Fu
rnit
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d f
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res
176,1
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28,5
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810,4
27
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94
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780,6
64
102,8
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64,2
51
79,5
80,3
58
Veh
icle
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--
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20
27,4
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55
Tota
l44,8
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49
8,8
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44,8
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89,5
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8,4
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67
Pre
vio
us y
ear
44,7
16,7
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96
146,4
09,7
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55,4
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61,5
23
32,4
62,1
68,5
67
2,8
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73,5
32
41,5
52,5
43
35,2
83,7
89,5
56
9,5
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67
Inta
ng
ible
ass
ets
Co
mp
ute
r so
ftw
are
70,3
02,6
84
6,4
85,9
65
- 76,7
88,6
49
59,7
18,3
64
4,0
43,9
81
-63,7
62,3
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26,3
04
10,5
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20
Tech
nic
al kn
ow
-ho
w438,3
80,2
08
--
438,3
80,2
08
271,8
58,6
14
28,7
04,3
81
-300,5
62,9
95
137,8
17,2
13
166,5
21,5
94
Tota
l508,6
82,8
92
6,4
85,9
65
-515,1
68,8
57
331,5
76,9
78
32,7
48,3
62
-364,3
25,3
40
150,8
43,5
17
177,1
05,9
14
Pre
vio
us y
ear
380,7
96,2
34
132,1
98,5
88
4,3
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30
508,6
82,8
92
295,1
93,1
47
39,1
50,1
48
2,7
66,3
17
331,5
76,9
78
177,1
05,9
14
No
tes:
1.
Ad
dit
ion
s t
o p
lan
t an
d m
ach
inery
in
clu
de e
xch
an
ge lo
ss o
f R
s. N
il (p
revi
ou
s y
ear
exc
han
ge lo
ss o
f R
s. 70,9
14,5
78).
2.
Gro
ss b
lock
of
fixe
d a
ssets
in
clu
de R
s. 435,4
43,4
06 (p
revi
ou
s y
ear
Rs. 435,4
43,4
06) re
lati
ng
to
th
e S
EZ d
ivis
ion
of
the C
om
pan
y.
73
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
15 Non current investments
Particulars As at As at 31 December 2013 31 March 2013
Trade investments
(1) Investment in equity shares
(a) Subsidiaries
European Optic Media Technology GMBH
Share capital of ¤ 2,025,000 (previous year ¤ 2,025,000) includes reserve capital of Rs. 111,689,796 (previous year Rs. 111,689,796) 222,953,546 222,953,546
Less: Provision for diminution (168,852,376) 54,101,170 (168,852,376) 54,101,170
Peraround Limited
1,524,761 (previous year 1,524,761) shares of ¤1.71 each 154,618,741 154,618,741
Photovoltaic Holdings Limited
7,086,860 (previous year 7,086,860) equity shares of GBP 1 each 498,080,000 498,080,000
Moser Baer SEZ Developer Limited
3,000,000 (previous year 3,000,000) equity shares of Rs. 10 each 30,000,000 30,000,000
Moser Baer Entertainment Limited
270,000 (previous year 270,000) equity shares of Rs. 10 each 2,700,000 2,700,000
6,000,000 (previous year 6,000,000) equity shares of Rs. 10 each issued at premium of Rs. 90 each 600,000,000 600,000,000
Moser Baer Investments Limited
1,400,000 (previous year 1,350,000 ) equity shares of Rs. 10 each 14,000,000 14,000,000
(b) Associates
Global Data Media FZ-LLC
7,194 (previous year 7,194) shares of AED 1,000 each 92,532,185 92,532,185
Less: Provision for diminution (92,532,185) - (92,532,185) -
Moser Baer Infrastructure Limited
3,430,000 (previous year 3,430,000) equity shares of Rs. 10 each 34,300,000 34,300,000
Less: Provision for diminution (34,300,000) - (34,300,000) -
(c) Others
Lumen Engineering Private Limited
102,000 (previous year 102,000) equity shares of Rs. 10 each 1,020,000 1,020,000
Moser Baer Projects Private Limited
510,000 (previous year 510,000) equity shares of Rs. 10 each 5,100,000 5,100,000
Capco Luxembourg S.A.R.L.
(1) (previous year 1) equity share of ¤ 125 each 4,961 4,961
1,359,624,872 1,359,624,872
(2) Investments in preference shares
74
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
Particulars As at As at 31 December 2013 31 March 2013
(a) Subsidiaries
Peraround Limited
1,833 (previous year 1,833) zero coupon
redeemable preference shares of ¤ 100 each at a premium of ¤ 900 each 299,156,000 299,156,000
Less: Provision for diminution (223,624,000) 75,532,000 (223,624,000) 75,532,000
Helios Photo Voltaic Limited (formerly Moser Baer Photovoltaic Limited)
86,500,000 (previous year 86,500,000) 9% cumulative, convertible, redeemable series A preference shares of Rs. 10 each 865,000,000 865,000,000
26,021,466 (previous year 26,021,466) 9% cumulative, redeemable series B1 preference shares of Rs. 10 each 260,214,660 260,214,660
33,887,760 (previous year 33,887,760) 9% cumulative, redeemable series B2 preference shares of Rs. 10 each 338,877,600 338,877,600
Less: Provision for diminution (111,510,000) 1,352,582,260 - 1,464,092,260
Moser Baer Solar Limited
105,000,000 (previous year 105,000,000) class C redeemable preference shares of Rs.10 each 1,050,000,000 1,050,000,000
41,000,000 (previous year 41,000,000) series C redeemable preference shares of Rs.10 each 410,000,000 1,460,000,000 410,000,000 1,460,000,000
Moser Baer SEZ Developer Limited
7,500,000 (previous year 7,500,000) 9% compulsorily cumulative convertible preference shares of Rs. 10 each at the premium of Rs. 90 each 750,000,000 750,000,000
Moser Baer Entertainment Limited
50,000,000 (previous year 50,000,000) 10% cumulative, redeemable preference shares of Rs 10 each 500,000,000 500,000,000
10,000,000 (previous year 10,000,000) 15% cumulative, redeemable series B preference shares of Rs. 10 each 100,000,000 600,000,000 100,000,000 600,000,000
Moser Baer Investments Limited
63,114,660 (previous year 63,114,660) compulsorily convertible preference shares of Rs. 10 each 631,146,600 631,146,600
(b) Others
Capco Luxembourg S.A.R.L.
63,366 (previous year 63,366) preferred equity certificates of Euro 125 each 320,668,823 320,668,823
Less: Provision for diminution (320,668,823) - (320,668,823) -
4,869,260,860 4,980,770,860
(3) Investments in debentures
Moser Baer Solar Limited
1 (previous year 1) 13.25% non convertible debentures of Rs. 60,000,000 each 60,000,000 60,000,000
1 (previous year 1) 13.25% non convertible debentures of Rs. 65,000,000 each 65,000,000 65,000,000
1 (previous year 1) 13.25% non convertible debentures of Rs. 375,000,000 each 375,000,000 500,000,000 375,000,000 500,000,000
500,000,000 500,000,000
Total 6,728,885,732 6,840,395,732
75
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
Particulars As at As at 31 December 2013 31 March 2013
Aggregate amount of unquoted investments 6,728,885,732 6,840,395,732
Aggregate amount of provision for diminution 951,487,384 839,977,384
16 Long term loans and advances
Particulars As at As at 31 December 2013 31 March 2013
Unsecured, considered good unless otherwise stated
Advances for capital goods 26,389,604 48,361,055
Security deposits 72,914,331 70,505,021
Loan to subsidiaries 809,849,259 1,214,299,084
Prepaid expenses 428,180 1,028,600
Prepaid taxes (net of provision for tax Rs. 14,957,797 (previous year Rs. 82,635,015)) 72,824,751 67,346,529
Balances with government authorities 129,522,404 145,414,421
Total 1,111,928,529 1,546,954,710
17 Other non current assets
Particulars As at As at31 December 2013 31 March 2013
(a) Lease rent receivable from subsidiaries
- Secured, considered good 1,715,000,000 1,715,000,000
- Unsecured, considered good 816,961,580 1,009,095,014
2,531,961,580 2,724,095,014
(b) Others
- Margin money 133,825,607 33,119,589
- Lease equalisation account 39,236,400 35,974,260
- Long term trade receivable from subsidiaries 1,328,250,000 -
1,501,312,007 69,093,849
Total 4,033,273,587 2,793,188,863
18 Inventories
Particulars As at As at 31 December 2013 31 March 2013
(a) Raw materials and components 444,407,284 642,491,592
Goods-in-transit 89,097,583 98,129,260
533,504,867 740,620,852
(b) Work-in-progress 2,133,694,448 2,112,003,373
2,133,694,448 2,112,003,373
(c) Finished goods 1,326,394,382 1,336,743,136
1,326,394,382 1,336,743,136
(d) Stock-in-trade 18,792,828 25,709,530
18,792,828 25,709,530
(e) Stores and spares 834,007,770 902,654,683
Goods-in-transit 322,590 3,228,141
834,330,360 905,882,824
(f) Loose tools 3,778,441 3,816,518
3,778,441 3,816,518
(g) Packing material 113,254,275 125,678,393
Goods-in-transit 48,360,347 26,898,691
161,614,622 152,577,084
Total 5,012,109,948 5,277,353,317
74
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
Particulars As at As at 31 December 2013 31 March 2013
(a) Subsidiaries
Peraround Limited
1,833 (previous year 1,833) zero coupon
redeemable preference shares of ¤ 100 each at a premium of ¤ 900 each 299,156,000 299,156,000
Less: Provision for diminution (223,624,000) 75,532,000 (223,624,000) 75,532,000
Helios Photo Voltaic Limited (formerly Moser Baer Photovoltaic Limited)
86,500,000 (previous year 86,500,000) 9% cumulative, convertible, redeemable series A preference shares of Rs. 10 each 865,000,000 865,000,000
26,021,466 (previous year 26,021,466) 9% cumulative, redeemable series B1 preference shares of Rs. 10 each 260,214,660 260,214,660
33,887,760 (previous year 33,887,760) 9% cumulative, redeemable series B2 preference shares of Rs. 10 each 338,877,600 338,877,600
Less: Provision for diminution (111,510,000) 1,352,582,260 - 1,464,092,260
Moser Baer Solar Limited
105,000,000 (previous year 105,000,000) class C redeemable preference shares of Rs.10 each 1,050,000,000 1,050,000,000
41,000,000 (previous year 41,000,000) series C redeemable preference shares of Rs.10 each 410,000,000 1,460,000,000 410,000,000 1,460,000,000
Moser Baer SEZ Developer Limited
7,500,000 (previous year 7,500,000) 9% compulsorily cumulative convertible preference shares of Rs. 10 each at the premium of Rs. 90 each 750,000,000 750,000,000
Moser Baer Entertainment Limited
50,000,000 (previous year 50,000,000) 10% cumulative, redeemable preference shares of Rs 10 each 500,000,000 500,000,000
10,000,000 (previous year 10,000,000) 15% cumulative, redeemable series B preference shares of Rs. 10 each 100,000,000 600,000,000 100,000,000 600,000,000
Moser Baer Investments Limited
63,114,660 (previous year 63,114,660) compulsorily convertible preference shares of Rs. 10 each 631,146,600 631,146,600
(b) Others
Capco Luxembourg S.A.R.L.
63,366 (previous year 63,366) preferred equity certificates of Euro 125 each 320,668,823 320,668,823
Less: Provision for diminution (320,668,823) - (320,668,823) -
4,869,260,860 4,980,770,860
(3) Investments in debentures
Moser Baer Solar Limited
1 (previous year 1) 13.25% non convertible debentures of Rs. 60,000,000 each 60,000,000 60,000,000
1 (previous year 1) 13.25% non convertible debentures of Rs. 65,000,000 each 65,000,000 65,000,000
1 (previous year 1) 13.25% non convertible debentures of Rs. 375,000,000 each 375,000,000 500,000,000 375,000,000 500,000,000
500,000,000 500,000,000
Total 6,728,885,732 6,840,395,732
75
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
Particulars As at As at 31 December 2013 31 March 2013
Aggregate amount of unquoted investments 6,728,885,732 6,840,395,732
Aggregate amount of provision for diminution 951,487,384 839,977,384
16 Long term loans and advances
Particulars As at As at 31 December 2013 31 March 2013
Unsecured, considered good unless otherwise stated
Advances for capital goods 26,389,604 48,361,055
Security deposits 72,914,331 70,505,021
Loan to subsidiaries 809,849,259 1,214,299,084
Prepaid expenses 428,180 1,028,600
Prepaid taxes (net of provision for tax Rs. 14,957,797 (previous year Rs. 82,635,015)) 72,824,751 67,346,529
Balances with government authorities 129,522,404 145,414,421
Total 1,111,928,529 1,546,954,710
17 Other non current assets
Particulars As at As at31 December 2013 31 March 2013
(a) Lease rent receivable from subsidiaries
- Secured, considered good 1,715,000,000 1,715,000,000
- Unsecured, considered good 816,961,580 1,009,095,014
2,531,961,580 2,724,095,014
(b) Others
- Margin money 133,825,607 33,119,589
- Lease equalisation account 39,236,400 35,974,260
- Long term trade receivable from subsidiaries 1,328,250,000 -
1,501,312,007 69,093,849
Total 4,033,273,587 2,793,188,863
18 Inventories
Particulars As at As at 31 December 2013 31 March 2013
(a) Raw materials and components 444,407,284 642,491,592
Goods-in-transit 89,097,583 98,129,260
533,504,867 740,620,852
(b) Work-in-progress 2,133,694,448 2,112,003,373
2,133,694,448 2,112,003,373
(c) Finished goods 1,326,394,382 1,336,743,136
1,326,394,382 1,336,743,136
(d) Stock-in-trade 18,792,828 25,709,530
18,792,828 25,709,530
(e) Stores and spares 834,007,770 902,654,683
Goods-in-transit 322,590 3,228,141
834,330,360 905,882,824
(f) Loose tools 3,778,441 3,816,518
3,778,441 3,816,518
(g) Packing material 113,254,275 125,678,393
Goods-in-transit 48,360,347 26,898,691
161,614,622 152,577,084
Total 5,012,109,948 5,277,353,317
76
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
19 Trade receivables
Particulars As at As at31 December 2013 31 March 2013
Trade receivables outstanding for a period exceeding six months from the date they are due for payment
- Unsecured, considered good 863,100,289 1,524,596,843
- Unsecured, considered doubtful 115,201,563 259,145,075
- Less: Provision for doubtful debts* (115,201,563) (259,145,075)
863,100,289 1,524,596,843
Others
- Unsecured, considered good 4,101,731,933 4,651,287,916
4,101,731,933 4,651,287,916
Total 4,964,832,222 6,175,884,759
* The following is the movement in provisions above from the beginning to the close of the reporting period:
Particulars Provision for debtors
As at As at 31 December 2013 31 March 2013
Balance as at the beginning of the period/ year 259,145,074 251,567,998
Add: Provision made during the period/ year 43,425,739 7,577,076
Less: Utilised/written back during the period/ year (187,369,250) -
Balance as at the end of the period/ year 115,201,563 259,145,074
20 Cash and bank balances
Particulars As at As at 31 December 2013 31 March 2013
Cash and cash equivalents
Cash in hand 1,029,812 1,177,529
Funds in transit 500,000 45,009,805
Cheques in hand 6,975 515,234
Bank balances in
- Current accounts 190,366,970 465,150,928
- Deposits with less than 3 months maturity - 85,200,000
191,903,757 597,053,496
Other bank balances
Fixed deposits with maturity more than 3 months but less than 12 months 38,197,884 399,449,832
Margin money with maturity less than 12 months 482,429,325 309,207,878
Unpaid dividend accounts 2,940,574 3,302,624
523,567,783 711,960,334
Total 715,471,540 1,309,013,830
77
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
21 Short term loans and advances
Particulars As at 31 December 2013 31 March 2013
(a) Loans and advances to related parties
Unsecured, considered good 151,380,152 144,951,249
(b) Others
Unsecured, considered good
- Advances to suppliers 92,435,746 77,003,120
- Prepaid expenses 68,923,797 63,723,661
- Security deposits 11,436,660 13,817,121
- Balance with government authorities 288,362,754 256,795,296
- Advances to employees 3,341,533 1,849,758
- Amount due from director (refer note below) 827,579 16,081,627
- Others 13,745,179 27,091,480
Unsecured, considered doubtful
- Taxes recoverable 449,294 449,294
- Less: Provision (449,294) (449,294)
- -
Total 630,453,400 601,313,312
Note:
Amount due from a director as at 31 March 2013 represents remuneration paid to the Managing Director in excess of Schedule XIII of Companies Act, 1956 for the period 1 September 2011 to 31 March 2013, for which the Company had filed an application with the Central Government for post facto approval. During the current period, the Company has received the approval for annual remuneration of Rs. 14,758,620. As a result, the amount of Rs. 13,598,867 included in balance recoverable as at 31 March 2013 has been charged to the statement of profit and loss during the period and the remaining balance will be recovered from the director in six equal installments. The Company has recovered four installments in the current period and the balance amount represents the remaining two pending installments.
22 Other current assets
Particulars As at As at 31 December 2013 31 March 2013
Interest accrued on fixed deposits 23,041,270 18,535,982
Interest accrued on investments 152,878,944 103,463,706
Interest accrued and due on loan to subsidiaries 36,707,293 329,672,726
Lease rent receivable 251,484,836 230,703,919
Recoverable from banks under corporate debt restructuring scheme 855,841,627 1,334,391,231
Lease equalisation account 1,466,640 -
Total 1,321,420,610 2,016,767,564
As at
76
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
19 Trade receivables
Particulars As at As at31 December 2013 31 March 2013
Trade receivables outstanding for a period exceeding six months from the date they are due for payment
- Unsecured, considered good 863,100,289 1,524,596,843
- Unsecured, considered doubtful 115,201,563 259,145,075
- Less: Provision for doubtful debts* (115,201,563) (259,145,075)
863,100,289 1,524,596,843
Others
- Unsecured, considered good 4,101,731,933 4,651,287,916
4,101,731,933 4,651,287,916
Total 4,964,832,222 6,175,884,759
* The following is the movement in provisions above from the beginning to the close of the reporting period:
Particulars Provision for debtors
As at As at 31 December 2013 31 March 2013
Balance as at the beginning of the period/ year 259,145,074 251,567,998
Add: Provision made during the period/ year 43,425,739 7,577,076
Less: Utilised/written back during the period/ year (187,369,250) -
Balance as at the end of the period/ year 115,201,563 259,145,074
20 Cash and bank balances
Particulars As at As at 31 December 2013 31 March 2013
Cash and cash equivalents
Cash in hand 1,029,812 1,177,529
Funds in transit 500,000 45,009,805
Cheques in hand 6,975 515,234
Bank balances in
- Current accounts 190,366,970 465,150,928
- Deposits with less than 3 months maturity - 85,200,000
191,903,757 597,053,496
Other bank balances
Fixed deposits with maturity more than 3 months but less than 12 months 38,197,884 399,449,832
Margin money with maturity less than 12 months 482,429,325 309,207,878
Unpaid dividend accounts 2,940,574 3,302,624
523,567,783 711,960,334
Total 715,471,540 1,309,013,830
77
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
21 Short term loans and advances
Particulars As at 31 December 2013 31 March 2013
(a) Loans and advances to related parties
Unsecured, considered good 151,380,152 144,951,249
(b) Others
Unsecured, considered good
- Advances to suppliers 92,435,746 77,003,120
- Prepaid expenses 68,923,797 63,723,661
- Security deposits 11,436,660 13,817,121
- Balance with government authorities 288,362,754 256,795,296
- Advances to employees 3,341,533 1,849,758
- Amount due from director (refer note below) 827,579 16,081,627
- Others 13,745,179 27,091,480
Unsecured, considered doubtful
- Taxes recoverable 449,294 449,294
- Less: Provision (449,294) (449,294)
- -
Total 630,453,400 601,313,312
Note:
Amount due from a director as at 31 March 2013 represents remuneration paid to the Managing Director in excess of Schedule XIII of Companies Act, 1956 for the period 1 September 2011 to 31 March 2013, for which the Company had filed an application with the Central Government for post facto approval. During the current period, the Company has received the approval for annual remuneration of Rs. 14,758,620. As a result, the amount of Rs. 13,598,867 included in balance recoverable as at 31 March 2013 has been charged to the statement of profit and loss during the period and the remaining balance will be recovered from the director in six equal installments. The Company has recovered four installments in the current period and the balance amount represents the remaining two pending installments.
22 Other current assets
Particulars As at As at 31 December 2013 31 March 2013
Interest accrued on fixed deposits 23,041,270 18,535,982
Interest accrued on investments 152,878,944 103,463,706
Interest accrued and due on loan to subsidiaries 36,707,293 329,672,726
Lease rent receivable 251,484,836 230,703,919
Recoverable from banks under corporate debt restructuring scheme 855,841,627 1,334,391,231
Lease equalisation account 1,466,640 -
Total 1,321,420,610 2,016,767,564
As at
78
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
23 Revenue from operations
Particulars For the period ended For the year ended31 December 2013 31 March 2013
Sale of products (refer note (i) below):
- Finished goods 9,184,382,584 14,364,354,504
- Traded goods 34,132,011 30,484,276
9,218,514,595 14,394,838,780
Sale of services (refer note (ii) below) 340,492,272 531,459,436
Other operating revenues:
- Scrap sales 43,627,044 54,213,342
- Old liabilities and provisions no longer required written back 42,704,706 25,784,675
- Export benefits - focused product scheme 102,474,729 193,831,566
- Others 94,538,256 20,010,829
283,344,735 293,840,412
Total 9,842,351,602 15,220,138,628
Notes:
(i) Detail of sales for major products are as follows:
Particulars For the period ended For the year ended 31 December 2013 31 March 2013
Finished goods
- Optical media products 8,447,904,078 13,247,247,530
- Pen drives and cards 500,204,251 820,013,134
- Others 236,274,255 297,093,840
9,184,382,584 14,364,354,504
Traded goods
-LED and other products 34,132,011 30,484,276
34,132,011 30,484,276
Total 9,218,514,595 14,394,838,780
(ii) Sale of services includes income earned by the SEZ division of the Company in the form of lease rental for assets given on lease and utility services provided to the entities situated in the SEZ.
24 Other income
Particulars For the period ended For the year ended 31 December 2013 31 March 2013
Interest income on
- Deposits with banks 42,605,164 51,354,396
- Loans to subsidiaries 76,717,783 103,706,519
- Income tax refunds 3,856,352 3,972,340
- Unquoted long term investments 49,914,381 66,249,996
Other non-operating income
Lease rent 47,253,780 63,005,040
Gain on foreign currency transactions (net) 390,760,679 502,773,653
Prior period income (refer note 48) 3,353,062 -
Profit on sale of fixed assets (net) 164 8,790,243
Total 614,461,365 799,852,187
79
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
25 Cost of materials consumed
Particulars For the period ended For the year ended 31 December 2013 31 March 2013
Raw materials (refer note below) 4,202,170,091 6,050,431,547
Packing materials 816,192,075 1,257,136,016
Total 5,018,362,166 7,307,567,563
Note:
Details of major components of raw material consumption are as follows:
Particulars For the period ended For the year ended 31 December 2013 31 March 2013
Polycarbonate 2,661,092,042 3,456,071,854
Silver 426,669,945 820,448,778
Others 1,114,408,104 1,773,910,915
Total 4,202,170,091 6,050,431,547
26 Purchase of stock in trade
Particulars For the period ended For the year ended 31 December 2013 31 March 2013
Purchase of LED products 5,459,328 14,363,076
Purchase of compact discs 3,958,416 64,264,255
Others 4,270,604 12,950,784
Total 13,688,348 91,578,115
27 Change in stock of finished goods, work-in-progress and traded goods
Particulars For the period ended For the year ended 31 December 2013 31 March 2013
Closing stock:
- Finished goods 1,327,037,241 1,336,743,137
- Work-in-progress 2,133,694,448 2,112,003,373
- Traded goods 18,792,828 25,709,530
3,479,524,517 3,474,456,040
Less: Opening stock:
- Finished goods 1,336,743,137 1,513,518,462
- Work-in-progress 2,112,003,373 2,022,939,791
- Traded goods 25,709,530 35,147,068
3,474,456,040 3,571,605,321
Excise duty on finished goods (8,008,388) (3,834,473)
Total 2,939,911 100,983,754
28 Employee benefits expense
Particulars For the period ended For the year ended31 December 2013 31 March 2013
Salaries, wages and bonus 953,370,448 1,525,057,318
Contributions to -
- Provident fund 50,996,032 77,865,690
- Employee’s state insurance 2,895,404 10,247,769
- Gratuity fund (refer note 43) 20,633,700 36,648,230
Social security and other benefit plans for overseas employees 2,338,784 1,744,664
Staff welfare 106,110,040 150,004,173
Total 1,136,344,408 1,801,567,844
78
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
23 Revenue from operations
Particulars For the period ended For the year ended31 December 2013 31 March 2013
Sale of products (refer note (i) below):
- Finished goods 9,184,382,584 14,364,354,504
- Traded goods 34,132,011 30,484,276
9,218,514,595 14,394,838,780
Sale of services (refer note (ii) below) 340,492,272 531,459,436
Other operating revenues:
- Scrap sales 43,627,044 54,213,342
- Old liabilities and provisions no longer required written back 42,704,706 25,784,675
- Export benefits - focused product scheme 102,474,729 193,831,566
- Others 94,538,256 20,010,829
283,344,735 293,840,412
Total 9,842,351,602 15,220,138,628
Notes:
(i) Detail of sales for major products are as follows:
Particulars For the period ended For the year ended 31 December 2013 31 March 2013
Finished goods
- Optical media products 8,447,904,078 13,247,247,530
- Pen drives and cards 500,204,251 820,013,134
- Others 236,274,255 297,093,840
9,184,382,584 14,364,354,504
Traded goods
-LED and other products 34,132,011 30,484,276
34,132,011 30,484,276
Total 9,218,514,595 14,394,838,780
(ii) Sale of services includes income earned by the SEZ division of the Company in the form of lease rental for assets given on lease and utility services provided to the entities situated in the SEZ.
24 Other income
Particulars For the period ended For the year ended 31 December 2013 31 March 2013
Interest income on
- Deposits with banks 42,605,164 51,354,396
- Loans to subsidiaries 76,717,783 103,706,519
- Income tax refunds 3,856,352 3,972,340
- Unquoted long term investments 49,914,381 66,249,996
Other non-operating income
Lease rent 47,253,780 63,005,040
Gain on foreign currency transactions (net) 390,760,679 502,773,653
Prior period income (refer note 48) 3,353,062 -
Profit on sale of fixed assets (net) 164 8,790,243
Total 614,461,365 799,852,187
79
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
25 Cost of materials consumed
Particulars For the period ended For the year ended 31 December 2013 31 March 2013
Raw materials (refer note below) 4,202,170,091 6,050,431,547
Packing materials 816,192,075 1,257,136,016
Total 5,018,362,166 7,307,567,563
Note:
Details of major components of raw material consumption are as follows:
Particulars For the period ended For the year ended 31 December 2013 31 March 2013
Polycarbonate 2,661,092,042 3,456,071,854
Silver 426,669,945 820,448,778
Others 1,114,408,104 1,773,910,915
Total 4,202,170,091 6,050,431,547
26 Purchase of stock in trade
Particulars For the period ended For the year ended 31 December 2013 31 March 2013
Purchase of LED products 5,459,328 14,363,076
Purchase of compact discs 3,958,416 64,264,255
Others 4,270,604 12,950,784
Total 13,688,348 91,578,115
27 Change in stock of finished goods, work-in-progress and traded goods
Particulars For the period ended For the year ended 31 December 2013 31 March 2013
Closing stock:
- Finished goods 1,327,037,241 1,336,743,137
- Work-in-progress 2,133,694,448 2,112,003,373
- Traded goods 18,792,828 25,709,530
3,479,524,517 3,474,456,040
Less: Opening stock:
- Finished goods 1,336,743,137 1,513,518,462
- Work-in-progress 2,112,003,373 2,022,939,791
- Traded goods 25,709,530 35,147,068
3,474,456,040 3,571,605,321
Excise duty on finished goods (8,008,388) (3,834,473)
Total 2,939,911 100,983,754
28 Employee benefits expense
Particulars For the period ended For the year ended31 December 2013 31 March 2013
Salaries, wages and bonus 953,370,448 1,525,057,318
Contributions to -
- Provident fund 50,996,032 77,865,690
- Employee’s state insurance 2,895,404 10,247,769
- Gratuity fund (refer note 43) 20,633,700 36,648,230
Social security and other benefit plans for overseas employees 2,338,784 1,744,664
Staff welfare 106,110,040 150,004,173
Total 1,136,344,408 1,801,567,844
80
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
29 Depreciation and amortisation
Particulars For the period ended For the year ended31 December 2013 31 March 2013
Depreciation and amortisation 1,542,746,510 2,902,323,680
Total 1,542,746,510 2,902,323,680
30 Finance cost
Particulars For the period ended For the year ended 31 December 2013 31 March 2013
Interest expense 1,575,222,422 1,966,742,273
Total 1,575,222,422 1,966,742,273
31 Other expenses
Particulars For the period ended For the year ended 31 December 2013 31 March 2013
Consumption of stores and spares 273,600,708 476,125,590
Power and fuel 1,372,037,744 1,929,080,947
Freight and forwarding 153,858,800 218,493,784
Royalty 184,319,489 776,478,742
Bank and LC charges 55,906,065 90,595,060
Commission on sales 2,630,966 6,719,263
Rent 444,168,254 618,752,879
Repairs
- buildings 445,357 1,112,522
- machinery 19,425,683 45,542,659
- others 17,835,289 24,452,088
Insurance 72,002,756 101,198,987
Outsourced staff cost 152,008,320 230,107,672
Rates and taxes 2,318,218 7,275,430
Remuneration to auditors (refer note below) 15,698,846 18,334,544
Travelling and conveyance 45,775,333 76,145,261
Legal and professional 115,587,842 190,051,206
Warranty expenses 3,515,669 24,504,269
Loss on cancellation of forward contracts (net) 57,035,898 306,762,087
Provision for doubtful debtors 36,167,900 -
Others 156,242,965 245,216,325
Total 3,180,582,102 5,386,949,315
Note:
Payment to auditors include the following:
Particulars For the period ended For the year ended31 December 2013 31 March 2013
Statutory audit (including limited reviews) 10,700,000 13,850,000
Certification 4,060,000 3,000,000
Out of pocket expenses 938,846 1,484,544
Total 15,698,846 18,334,544
81
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
32 Exceptional items
Particulars For the period ended For the year ended31 December 2013 31 March 2013
Exchange differences on foreign currency convertible bonds (666,847,500) -
Advances and other receivables written off (1,276,365,753) -
Reversal of interest expense for previous year under corporate debt restructuring scheme (refer note 7(c)) - 187,313,968
Provision for diminution in long term investments* (111,510,000) (168,852,376)
Total (2,054,723,253) 18,461,592
*Provision for diminution, other than temporary, in the value of non-current investment in Helios Photo Voltaic Limited (formerly Moser Baer Photo Voltaic Limited), a subsidiary company (previous year European Optic Media Technology GMBH).
33 Contingent liabilities
(a) Corporate guarantees given on behalf of the subsidiary companies: Rs. 20,430,975,000 (previous year Rs. 24,678,450,000). Against these guarantees, loans aggregating Rs. 15,867,946,862 (previous year Rs.15,270,411,636) have been availed by the subsidiary companies.
(b) Disputed demands (gross) in respect of:
Particulars As at As at31 December 2013 31 March 2013
Entry tax
[Amount paid under protest Rs. 11,928,443 (previous year Rs. 10,354,421) and bank guarantees furnished Rs. 15,558,616 (previous year Rs. 10,919,501)] 133,795,207 133,519,072
Service tax
[Amount paid under protest Rs. 2,953,470 (previous year Rs. 2,953,470)] 695,928,194 367,384,719
Sales tax
[Amount paid under protest Rs. 18,454,494 (previous year Rs. 17,010,790) and bank and other guarantees furnished Rs. 104,723,040 (previous year Rs. 101,470,187)] 159,974,070 121,988,323
Custom duty and excise duty
[Amount paid under protest Rs. 5,805,819 (previous year Rs. 5,796,635)] 543,349,313 527,676,009
Income tax
[Amount paid under protest Rs. 34,500,000 (previous year Rs. 34,500,000)] 115,689,581 112,775,091
Total 1,648,736,365 1,263,343,214
(c) Claims against the Company not acknowledged as debts: Rs. 345,900 (previous year Rs. Nil).
(d) Letters of credit opened by banks on behalf of the Company: Rs. 244,331,479 (previous year Rs. 356,269,994).
(e) Recompense amount payable in lieu of bank sacrifice (mandarory disclosure as per RBI): Rs. 1,194,220,949 (previous year Rs. 855,284,159).
The amount shown in (a) above represents guarantees given in the normal course of the Company’s operations and are not expected to result in any loss to the Company on the basis of the beneficiary fulfilling its ordinary commercial obligations.
The amounts shown in (b) and (c) above represent the best possible estimates arrived at on the basis of available information. The uncertainties and possible reimbursements are dependent on the outcome of the different legal processes which have been invoked by the Company or the claimants as the case may be and therefore cannot be estimated accurately. The Company engages reputed professional advisors to protect its interests and has been advised that it has strong legal positions against such disputes.
34 Capital commitments
Estimated value of contracts remaining to be executed on capital account and not provided for (net of advances): Rs. 173,433,150 (previous year Rs. 155,128,173).
35 Lease obligations
(a) The Company has entered into operating leases for its offices, guest houses, employee’s residences and utilities that are renewable on a periodic basis and are cancellable at Company’s option. Total lease payments recognized in the statement of
80
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
29 Depreciation and amortisation
Particulars For the period ended For the year ended31 December 2013 31 March 2013
Depreciation and amortisation 1,542,746,510 2,902,323,680
Total 1,542,746,510 2,902,323,680
30 Finance cost
Particulars For the period ended For the year ended 31 December 2013 31 March 2013
Interest expense 1,575,222,422 1,966,742,273
Total 1,575,222,422 1,966,742,273
31 Other expenses
Particulars For the period ended For the year ended 31 December 2013 31 March 2013
Consumption of stores and spares 273,600,708 476,125,590
Power and fuel 1,372,037,744 1,929,080,947
Freight and forwarding 153,858,800 218,493,784
Royalty 184,319,489 776,478,742
Bank and LC charges 55,906,065 90,595,060
Commission on sales 2,630,966 6,719,263
Rent 444,168,254 618,752,879
Repairs
- buildings 445,357 1,112,522
- machinery 19,425,683 45,542,659
- others 17,835,289 24,452,088
Insurance 72,002,756 101,198,987
Outsourced staff cost 152,008,320 230,107,672
Rates and taxes 2,318,218 7,275,430
Remuneration to auditors (refer note below) 15,698,846 18,334,544
Travelling and conveyance 45,775,333 76,145,261
Legal and professional 115,587,842 190,051,206
Warranty expenses 3,515,669 24,504,269
Loss on cancellation of forward contracts (net) 57,035,898 306,762,087
Provision for doubtful debtors 36,167,900 -
Others 156,242,965 245,216,325
Total 3,180,582,102 5,386,949,315
Note:
Payment to auditors include the following:
Particulars For the period ended For the year ended31 December 2013 31 March 2013
Statutory audit (including limited reviews) 10,700,000 13,850,000
Certification 4,060,000 3,000,000
Out of pocket expenses 938,846 1,484,544
Total 15,698,846 18,334,544
81
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
32 Exceptional items
Particulars For the period ended For the year ended31 December 2013 31 March 2013
Exchange differences on foreign currency convertible bonds (666,847,500) -
Advances and other receivables written off (1,276,365,753) -
Reversal of interest expense for previous year under corporate debt restructuring scheme (refer note 7(c)) - 187,313,968
Provision for diminution in long term investments* (111,510,000) (168,852,376)
Total (2,054,723,253) 18,461,592
*Provision for diminution, other than temporary, in the value of non-current investment in Helios Photo Voltaic Limited (formerly Moser Baer Photo Voltaic Limited), a subsidiary company (previous year European Optic Media Technology GMBH).
33 Contingent liabilities
(a) Corporate guarantees given on behalf of the subsidiary companies: Rs. 20,430,975,000 (previous year Rs. 24,678,450,000). Against these guarantees, loans aggregating Rs. 15,867,946,862 (previous year Rs.15,270,411,636) have been availed by the subsidiary companies.
(b) Disputed demands (gross) in respect of:
Particulars As at As at31 December 2013 31 March 2013
Entry tax
[Amount paid under protest Rs. 11,928,443 (previous year Rs. 10,354,421) and bank guarantees furnished Rs. 15,558,616 (previous year Rs. 10,919,501)] 133,795,207 133,519,072
Service tax
[Amount paid under protest Rs. 2,953,470 (previous year Rs. 2,953,470)] 695,928,194 367,384,719
Sales tax
[Amount paid under protest Rs. 18,454,494 (previous year Rs. 17,010,790) and bank and other guarantees furnished Rs. 104,723,040 (previous year Rs. 101,470,187)] 159,974,070 121,988,323
Custom duty and excise duty
[Amount paid under protest Rs. 5,805,819 (previous year Rs. 5,796,635)] 543,349,313 527,676,009
Income tax
[Amount paid under protest Rs. 34,500,000 (previous year Rs. 34,500,000)] 115,689,581 112,775,091
Total 1,648,736,365 1,263,343,214
(c) Claims against the Company not acknowledged as debts: Rs. 345,900 (previous year Rs. Nil).
(d) Letters of credit opened by banks on behalf of the Company: Rs. 244,331,479 (previous year Rs. 356,269,994).
(e) Recompense amount payable in lieu of bank sacrifice (mandarory disclosure as per RBI): Rs. 1,194,220,949 (previous year Rs. 855,284,159).
The amount shown in (a) above represents guarantees given in the normal course of the Company’s operations and are not expected to result in any loss to the Company on the basis of the beneficiary fulfilling its ordinary commercial obligations.
The amounts shown in (b) and (c) above represent the best possible estimates arrived at on the basis of available information. The uncertainties and possible reimbursements are dependent on the outcome of the different legal processes which have been invoked by the Company or the claimants as the case may be and therefore cannot be estimated accurately. The Company engages reputed professional advisors to protect its interests and has been advised that it has strong legal positions against such disputes.
34 Capital commitments
Estimated value of contracts remaining to be executed on capital account and not provided for (net of advances): Rs. 173,433,150 (previous year Rs. 155,128,173).
35 Lease obligations
(a) The Company has entered into operating leases for its offices, guest houses, employee’s residences and utilities that are renewable on a periodic basis and are cancellable at Company’s option. Total lease payments recognized in the statement of
82
profit and loss with respect to aforementioned premises is Rs. 444,168,254 (previous year Rs. 618,752,879). The total rent recovered on sub lease during the year is Rs. 47,253,780 (previous year Rs.63,005,040).
(b) Assets taken on operating lease
The future minimum lease payments and sub lease rentals are as follows:
Particulars As at 31 December 2013 31 March 2013
Total of future minimum lease payments under non cancellable operating lease for period 17,501,400 62,505,000
a. Not later than one year 17,501,400 60,004,800
b. Later than one year but not later than five years - 2,500,200
c. Later than five years - -
Total of future minimum sub-lease rental receivable for a period of three years 18,376,470 65,630,250
(c) Assets given on finance lease
The Company has given buildings and utilities on financial lease to units operating in its SEZ division.
Buildings are given on lease for a period of 20 years and utilities are given for a period of 7-10 years. Apart from the regular lease rental the Company has also taken interest free refundable security deposits of Rs. 1,605,000,000 (previous year Rs 1,605,000,000) from the lessees which is refundable at the end of the lease term.
Gross investments and present value of minimum lease payments receivable under the lease as under:
Particulars As at As at31 December 2013 31 March 2013
Gross investments in the lease
Not later than one year 445,740,000 445,740,000
Later than one year but not later than five years 1,500,813,661 1,678,894,866
Later than five years 712,696,439 868,920,234
Total 2,659,250,100 2,993,555,100
Present value of minimum lease payments receivable
Not later than one year 238,498,889 262,434,824
Later than one year but not later than five years 603,157,255 729,342,478
Later than five years (48,998,837) (2,156,305)
Total 792,657,307 989,620,997
Unearned finance income 1,749,608,468 1,886,949,778
The present value of unguaranteed residual value 116,984,325 116,984,325
36 Taxation
Provision for taxation has not been made in the absence of assessable taxable income as per the Income Tax Act,1961.
The break up of net deferred asset/ tax liability is as under:
Particulars of timing differences As at Movement during As at31 March 2013 the period 31 December 2013
Deferred tax liability
Provision for lease rent equalisation 2,045,670 (511,417) 1,534,253
Total 2,045,670 (511,417) 1,534,253
Deferred tax assets
Provision for leave encashment and gratuity 2,045,670 (511,417) 1,534,253
Total 2,045,670 (511,417) 1,534,253
Net deferred tax asset - - -
Notes:
1. The tax impact for the above purpose has been arrived at by applying a tax rate of 32.445% (previous year 32.445%) being the prevailing tax rate for Indian Companies under the Income Tax Act, 1961
2. Deferred tax asset has been recognised only to the extent of the deferred tax liability.
As at
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
83
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
37 Derivative instruments
The Company uses forward exchange contracts to hedge against its foreign currency exposures relating to the underlying transactions. The Company does not enter into any derivative instruments for trading or speculative purposes.
(a) The forward exchange contracts outstanding as at 31 December 2013 are as under :
Currency exchange USD/INR EUR/INR
(i) Number of ‘sell’ contracts 2 -
(9) (1)
(ii) Aggregate foreign currency amount 1,500,000 -
Rs. value 104,700,000 -
Aggregate foreign currency amount (10,000,000) (2,000,000)
Rs. value (562,040,000) (148,390,000)
(b) The foreign currency exposures not hedged as at year end as at 31 December 2013 are as under:
(Figures in brackets are for the previous year)
Currency exchange USD EUR GBP CHF JPY SGD
Receivables in foreign currency 36,318,782 24,341,696 1 - 725,337 165
Rs. value 2,244,863,902 2,067,827,098 145 - 425,555 8,053
Receivables in foreign currency (51,605,999) (21,450,805) (1) - (62,030) (165)
Rs. value (2,801,431,675) (1,490,723,663) (117) - (35,779) (7,200)
Payables in foreign currency 110,099,132 626,901 13,635 146,560 28,821,583 126,644
Rs. value 6,807,429,359 53,267,747 1,395,148 10,141,952 16,915,387 6,195,434
Payables in foreign currency (117,860,458) (1,512,249) (14,771) (198,780) (65,526,512) (99,498)
Rs. value (6,399,233,571) (105,123,954) (1,215,207) (11,453,679) (37,828,455) (4,354,023)
38 Composition of raw material, packing material, stores, spares and consumables consumed
Particulars Raw material and packing material Stores, spares and tools
For the period ended For the year ended For the period ended For the year ended31 December 2013 31 March 2013 31 December 2013 31 March 2013
Imported
Value (Rs.) 4,266,125,657 6,010,990,246 145,526,719 240,928,954
Percentage 85.01 82.26 53.19 50.60
Indigenous
Value (Rs.) 752,236,509 1,296,577,317 128,073,990 235,196,636
Percentage 14.99 17.74 46.81 49.40
Total 5,018,362,166 7,307,567,563 273,600,709 476,125,590
Percentage 100 100 100 100
82
profit and loss with respect to aforementioned premises is Rs. 444,168,254 (previous year Rs. 618,752,879). The total rent recovered on sub lease during the year is Rs. 47,253,780 (previous year Rs.63,005,040).
(b) Assets taken on operating lease
The future minimum lease payments and sub lease rentals are as follows:
Particulars As at 31 December 2013 31 March 2013
Total of future minimum lease payments under non cancellable operating lease for period 17,501,400 62,505,000
a. Not later than one year 17,501,400 60,004,800
b. Later than one year but not later than five years - 2,500,200
c. Later than five years - -
Total of future minimum sub-lease rental receivable for a period of three years 18,376,470 65,630,250
(c) Assets given on finance lease
The Company has given buildings and utilities on financial lease to units operating in its SEZ division.
Buildings are given on lease for a period of 20 years and utilities are given for a period of 7-10 years. Apart from the regular lease rental the Company has also taken interest free refundable security deposits of Rs. 1,605,000,000 (previous year Rs 1,605,000,000) from the lessees which is refundable at the end of the lease term.
Gross investments and present value of minimum lease payments receivable under the lease as under:
Particulars As at As at31 December 2013 31 March 2013
Gross investments in the lease
Not later than one year 445,740,000 445,740,000
Later than one year but not later than five years 1,500,813,661 1,678,894,866
Later than five years 712,696,439 868,920,234
Total 2,659,250,100 2,993,555,100
Present value of minimum lease payments receivable
Not later than one year 238,498,889 262,434,824
Later than one year but not later than five years 603,157,255 729,342,478
Later than five years (48,998,837) (2,156,305)
Total 792,657,307 989,620,997
Unearned finance income 1,749,608,468 1,886,949,778
The present value of unguaranteed residual value 116,984,325 116,984,325
36 Taxation
Provision for taxation has not been made in the absence of assessable taxable income as per the Income Tax Act,1961.
The break up of net deferred asset/ tax liability is as under:
Particulars of timing differences As at Movement during As at31 March 2013 the period 31 December 2013
Deferred tax liability
Provision for lease rent equalisation 2,045,670 (511,417) 1,534,253
Total 2,045,670 (511,417) 1,534,253
Deferred tax assets
Provision for leave encashment and gratuity 2,045,670 (511,417) 1,534,253
Total 2,045,670 (511,417) 1,534,253
Net deferred tax asset - - -
Notes:
1. The tax impact for the above purpose has been arrived at by applying a tax rate of 32.445% (previous year 32.445%) being the prevailing tax rate for Indian Companies under the Income Tax Act, 1961
2. Deferred tax asset has been recognised only to the extent of the deferred tax liability.
As at
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
83
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
37 Derivative instruments
The Company uses forward exchange contracts to hedge against its foreign currency exposures relating to the underlying transactions. The Company does not enter into any derivative instruments for trading or speculative purposes.
(a) The forward exchange contracts outstanding as at 31 December 2013 are as under :
Currency exchange USD/INR EUR/INR
(i) Number of ‘sell’ contracts 2 -
(9) (1)
(ii) Aggregate foreign currency amount 1,500,000 -
Rs. value 104,700,000 -
Aggregate foreign currency amount (10,000,000) (2,000,000)
Rs. value (562,040,000) (148,390,000)
(b) The foreign currency exposures not hedged as at year end as at 31 December 2013 are as under:
(Figures in brackets are for the previous year)
Currency exchange USD EUR GBP CHF JPY SGD
Receivables in foreign currency 36,318,782 24,341,696 1 - 725,337 165
Rs. value 2,244,863,902 2,067,827,098 145 - 425,555 8,053
Receivables in foreign currency (51,605,999) (21,450,805) (1) - (62,030) (165)
Rs. value (2,801,431,675) (1,490,723,663) (117) - (35,779) (7,200)
Payables in foreign currency 110,099,132 626,901 13,635 146,560 28,821,583 126,644
Rs. value 6,807,429,359 53,267,747 1,395,148 10,141,952 16,915,387 6,195,434
Payables in foreign currency (117,860,458) (1,512,249) (14,771) (198,780) (65,526,512) (99,498)
Rs. value (6,399,233,571) (105,123,954) (1,215,207) (11,453,679) (37,828,455) (4,354,023)
38 Composition of raw material, packing material, stores, spares and consumables consumed
Particulars Raw material and packing material Stores, spares and tools
For the period ended For the year ended For the period ended For the year ended31 December 2013 31 March 2013 31 December 2013 31 March 2013
Imported
Value (Rs.) 4,266,125,657 6,010,990,246 145,526,719 240,928,954
Percentage 85.01 82.26 53.19 50.60
Indigenous
Value (Rs.) 752,236,509 1,296,577,317 128,073,990 235,196,636
Percentage 14.99 17.74 46.81 49.40
Total 5,018,362,166 7,307,567,563 273,600,709 476,125,590
Percentage 100 100 100 100
84
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
39 Foreign currency transactions
Particulars For the period ended For the year ended31 December 2013 31 March 2013
(A) Value of imports on CIF basis:
Purchase of finished goods 344,102 5,897,553
Raw material, including goods-in-transit Rs. 89,097,583 (previous year Rs. 98,129,260) 2,119,254,188 3,283,285,105
Capital goods 1,375,303 14,741,118
Stores, spares and consumables, including goods-in-transit Rs 322,590 (previous year Rs. 3,228,141) 114,828,187 223,376,007
Packing material, including goods-in-transit Rs. 48,360,347 (previous year Rs. 26,898,691) 361,225,083 363,859,349
Total 2,597,026,863 3,891,159,132
(B) Expenditure in foreign currency (on accrual basis):
Travel 2,296,099 10,525,953
Royalty/ technical know-how fees 184,319,465 776,478,742
Directors sitting fees 230,000 539,995
Legal and professional 72,663,022 89,383,287
Other expenditure 149,443,417 153,370,667
Expenditure of foreign branch/ liaison office:
- Staff welfare 42,254 83,208
- Rent/ lease rent 5,539,763 5,483,152
- Legal and professional expenses 668,533 2,224,127
- Miscellaneous expenses 27,200,390 29,999,826
- Insurance 3,372,077 4,161,038
- Salaries and wages 15,857,994 27,485,648
- Repairs and maintenance 101,917 185,278
Total 461,734,931 1,099,920,921
(C) Earnings in foreign exchange (on accrual basis):
Value of exports on FOB basis 5,414,171,174 9,387,700,514
Interest 46,004,354 48,584,558
Other miscellaneous income 31,768,873 1,743,898
Total 5,491,944,401 9,438,028,970
85
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
40 Related party transactions:
In accordance with the requirements of Accounting Standard - 18 ‘Related Party Disclosures’ the names of the related party where control/ ability to exercise significant influence exists, along with the aggregate amount of transactions and period end balances with them as identified and certified by the management are given below:
(a) Names of related parties
Nature of relationship Name of the related party
Subsidiary European Optic Media Technology GMBH
Subsidiary Moser Baer SEZ Developer Limited
Subsidiary Solar Research Limited
Subsidiary Moser Baer Laboratories Limited
Subsidiary Moser Baer Entertainment Limited
Subsidiary Moser Baer Investments Limited
Subsidiary Photo Voltaic Holdings Limited
Subsidiary MB Solar Holdings Limited
Subsidiary Moser Baer Solar Limited
Subsidiary Helios Photo Voltaic Limited (formerly known as Moser Baer Photo Voltaic Limited)
Subsidiary Perafly Limited
Subsidiary Dalecrest Limited
Subsidiary Nicofly Limited
Subsidiary Perasoft Limited
Subsidiary Crownglobe Limited
Subsidiary Peraround Limited
Subsidiary Advoferm Limited
Subsidiary Cubic Technologies BV
Subsidiary Tifton Limited
Subsidiary Value Solar Energy Private Limited
Subsidiary Pride Solar Systems Private Limited
Subsidiary Admire Energy Solutions Private Limited
Subsidiary Moser Baer Solar Systems Private Limited
Subsidiary Competent Solar Energy Private Limited
Subsidiary OM&T B.V.*
Subsidiary Moser Baer Technologies Inc.
Subsidiary Moser Baer Infrastructure and Developers Limited
Subsidiary Moser Baer Photo Voltaic Inc.
Associate Global Data Media FZ LLC
Associate Moser Baer Infrastructure Limited
Associate Solar Value Proizvodjna d.d.
Trust Moser Baer Trust
Enterprises over which key management personnel exercise significant influence Moser Baer Engineering and Construction Limited
* Under liquidation w.e.f. 1 October 2013
Key management personnel
Chairman & managing director Mr. Deepak Puri
Whole time director Mrs. Nita Puri
Executive director Mr. Ratul Puri **
** Resigned in previous year
84
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
39 Foreign currency transactions
Particulars For the period ended For the year ended31 December 2013 31 March 2013
(A) Value of imports on CIF basis:
Purchase of finished goods 344,102 5,897,553
Raw material, including goods-in-transit Rs. 89,097,583 (previous year Rs. 98,129,260) 2,119,254,188 3,283,285,105
Capital goods 1,375,303 14,741,118
Stores, spares and consumables, including goods-in-transit Rs 322,590 (previous year Rs. 3,228,141) 114,828,187 223,376,007
Packing material, including goods-in-transit Rs. 48,360,347 (previous year Rs. 26,898,691) 361,225,083 363,859,349
Total 2,597,026,863 3,891,159,132
(B) Expenditure in foreign currency (on accrual basis):
Travel 2,296,099 10,525,953
Royalty/ technical know-how fees 184,319,465 776,478,742
Directors sitting fees 230,000 539,995
Legal and professional 72,663,022 89,383,287
Other expenditure 149,443,417 153,370,667
Expenditure of foreign branch/ liaison office:
- Staff welfare 42,254 83,208
- Rent/ lease rent 5,539,763 5,483,152
- Legal and professional expenses 668,533 2,224,127
- Miscellaneous expenses 27,200,390 29,999,826
- Insurance 3,372,077 4,161,038
- Salaries and wages 15,857,994 27,485,648
- Repairs and maintenance 101,917 185,278
Total 461,734,931 1,099,920,921
(C) Earnings in foreign exchange (on accrual basis):
Value of exports on FOB basis 5,414,171,174 9,387,700,514
Interest 46,004,354 48,584,558
Other miscellaneous income 31,768,873 1,743,898
Total 5,491,944,401 9,438,028,970
85
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
40 Related party transactions:
In accordance with the requirements of Accounting Standard - 18 ‘Related Party Disclosures’ the names of the related party where control/ ability to exercise significant influence exists, along with the aggregate amount of transactions and period end balances with them as identified and certified by the management are given below:
(a) Names of related parties
Nature of relationship Name of the related party
Subsidiary European Optic Media Technology GMBH
Subsidiary Moser Baer SEZ Developer Limited
Subsidiary Solar Research Limited
Subsidiary Moser Baer Laboratories Limited
Subsidiary Moser Baer Entertainment Limited
Subsidiary Moser Baer Investments Limited
Subsidiary Photo Voltaic Holdings Limited
Subsidiary MB Solar Holdings Limited
Subsidiary Moser Baer Solar Limited
Subsidiary Helios Photo Voltaic Limited (formerly known as Moser Baer Photo Voltaic Limited)
Subsidiary Perafly Limited
Subsidiary Dalecrest Limited
Subsidiary Nicofly Limited
Subsidiary Perasoft Limited
Subsidiary Crownglobe Limited
Subsidiary Peraround Limited
Subsidiary Advoferm Limited
Subsidiary Cubic Technologies BV
Subsidiary Tifton Limited
Subsidiary Value Solar Energy Private Limited
Subsidiary Pride Solar Systems Private Limited
Subsidiary Admire Energy Solutions Private Limited
Subsidiary Moser Baer Solar Systems Private Limited
Subsidiary Competent Solar Energy Private Limited
Subsidiary OM&T B.V.*
Subsidiary Moser Baer Technologies Inc.
Subsidiary Moser Baer Infrastructure and Developers Limited
Subsidiary Moser Baer Photo Voltaic Inc.
Associate Global Data Media FZ LLC
Associate Moser Baer Infrastructure Limited
Associate Solar Value Proizvodjna d.d.
Trust Moser Baer Trust
Enterprises over which key management personnel exercise significant influence Moser Baer Engineering and Construction Limited
* Under liquidation w.e.f. 1 October 2013
Key management personnel
Chairman & managing director Mr. Deepak Puri
Whole time director Mrs. Nita Puri
Executive director Mr. Ratul Puri **
** Resigned in previous year
86
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
(b) Details of transactions with the related parties along with period/ year end balances in the ordinary course of business:
(Figures in brackets are for the previous year)
Particulars Associates Subsidiaries Key management which key
personnel management and their personnel relatives have
significantinfluence
Sales of finished goods
O M & T BV - - - -
( - ) (122,404,200) ( - ) ( - )
Helios Photo Voltaic Limited (formerly known as Moser Baer Photo Voltaic Limited) - 27,108,822 - -
( - ) (1,081,710) ( - ) ( - )
Moser Baer Solar Limited - 25,133,514 - -
( - ) (203,415,056) ( - ) ( - )
Moser Baer Entertainment Limited - 1,204,696,225 - - 1,256,938,561
( - ) (2,083,404,888) ( - ) ( - ) (2,410,305,854)
Services rendered to related party
Moser Baer Engineering and Construction Limited - - - 47,781,090 47,781,090
( - ) ( - ) ( - ) (66,268,515) (66,268,515)
Service charges (included in services)
Helios Photo Voltaic Limited (formerly known as Moser Baer Photo Voltaic Limited) - 81,081,958 - -
( - ) (66,330,010) ( - ) ( - )
Moser Baer Solar Limited - 210,032,047 - - 291,114,005
( - ) (595,906,433) ( - ) ( - ) (662,236,443)
Lease rent (included in services)
Helios Photo Voltaic Limited (formerly known as Moser Baer Photo Voltaic Limited) - 12,656,153 - -
( - ) (22,560,000) ( - ) ( - )
Moser Baer Solar Limited - 33,422,371 - -
( - ) (48,720,000) ( - ) ( - )
Moser Baer Engineering and Construction Limited - - - 4,728,780 50,807,304
( - ) ( - ) ( - ) (6,305,040) (77,585,040)
Expenses incurred on behalf of other companies
Helios Photo Voltaic Limited (formerly known as Moser Baer Photo Voltaic Limited) - 4,985,456 - -
( - ) (3,602,366) ( - ) ( - )
Moser Baer Solar System Private Limited - 305 - -
( - ) (192,393) ( - ) ( - )
Moser Baer Solar Limited - 3,993,174 - -
( - ) (6,098,807) ( - ) ( - )
Moser Baer Entertainment Limited - 4,112 - -
( - ) ( - ) ( - ) ( - )
O M & T BV - - - -
( - ) (18,437,131) ( - ) ( - )
Others - 65,557 - - 9,048,604
( - ) (316,489) ( - ) ( - ) (28,647,186)
Entities on Total
87
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
(Figures in brackets are for the previous year)
Particulars Associates Subsidiaries Key Entities on Total management which key
personnel management and their personnel relatives have
significantinfluence
Reimbursement/ recovery against sales
O M & T BV - - - -
( - ) (208,048,690) ( - ) ( - )
Moser Baer Entertainment Limited - 1,090,337,775 - -
( - ) (2,328,207,700) ( - ) ( - )
Moser Baer Solar Limited - 24,511,564 - -
( - ) (24,498,644) ( - ) ( - )
Helios Photo Voltaic Limited (formerly known as Moser Baer Photo Voltaic Limited) - 11,332,294 - - 1,126,181,633
( - ) (1,081,710) ( - ) ( - ) (2,561,836,744)
Reimbursement/ recovery of expenses
Helios Photo Voltaic Limited (formerly known as Moser Baer Photo Voltaic Limited) - 246,388 - -
( - ) (63,620,255) ( - ) ( - )
Moser Baer Solar Limited - 412,679 - -
( - ) (426,400,026) ( - ) ( - )
Moser Baer Entertainment Limited - 2,895 - -
( - ) ( - ) ( - ) ( - )
Moser Baer Engineering and Construction Limited - - - 36,595,597
( - ) ( - ) ( - ) (53,661,854)
Others - 69,854 - - 37,327,413
( - ) (316,500) ( - ) ( - ) (543,998,635)
Payment by related party of our behalf
Helios Photo Voltaic Limited (formerly known as Moser Baer Photo Voltaic Limited) - 939,750 - - 939,750
( - ) ( - ) ( - ) ( - ) ( - )
Provision made/ balances written off
O M & T BV - 243,578,096 - -
( - ) ( - ) ( - ) ( - )
Peraround Limited - 632,787,612 - -
( - ) ( - ) ( - ) ( - )
Global Data Media FZ LLC 30,438,813 - - -
( - ) ( - ) ( - ) ( - )
Moser Baer Entertainment Limited - 400,000,000 - - 1,306,804,522
( - ) ( - ) ( - ) ( - ) ( - )
Purchase of semi-finished goods/ raw material/services
Moser Baer Entertainment Limited - 231,336 - -
( - ) (3,273,559) ( - ) ( - )
Helios Photo Voltaic Limited (formerly known as Moser Baer Photo Voltaic Limited) - 2,768,651 - -
( - ) (14,195) ( - ) ( - )
86
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
(b) Details of transactions with the related parties along with period/ year end balances in the ordinary course of business:
(Figures in brackets are for the previous year)
Particulars Associates Subsidiaries Key management which key
personnel management and their personnel relatives have
significantinfluence
Sales of finished goods
O M & T BV - - - -
( - ) (122,404,200) ( - ) ( - )
Helios Photo Voltaic Limited (formerly known as Moser Baer Photo Voltaic Limited) - 27,108,822 - -
( - ) (1,081,710) ( - ) ( - )
Moser Baer Solar Limited - 25,133,514 - -
( - ) (203,415,056) ( - ) ( - )
Moser Baer Entertainment Limited - 1,204,696,225 - - 1,256,938,561
( - ) (2,083,404,888) ( - ) ( - ) (2,410,305,854)
Services rendered to related party
Moser Baer Engineering and Construction Limited - - - 47,781,090 47,781,090
( - ) ( - ) ( - ) (66,268,515) (66,268,515)
Service charges (included in services)
Helios Photo Voltaic Limited (formerly known as Moser Baer Photo Voltaic Limited) - 81,081,958 - -
( - ) (66,330,010) ( - ) ( - )
Moser Baer Solar Limited - 210,032,047 - - 291,114,005
( - ) (595,906,433) ( - ) ( - ) (662,236,443)
Lease rent (included in services)
Helios Photo Voltaic Limited (formerly known as Moser Baer Photo Voltaic Limited) - 12,656,153 - -
( - ) (22,560,000) ( - ) ( - )
Moser Baer Solar Limited - 33,422,371 - -
( - ) (48,720,000) ( - ) ( - )
Moser Baer Engineering and Construction Limited - - - 4,728,780 50,807,304
( - ) ( - ) ( - ) (6,305,040) (77,585,040)
Expenses incurred on behalf of other companies
Helios Photo Voltaic Limited (formerly known as Moser Baer Photo Voltaic Limited) - 4,985,456 - -
( - ) (3,602,366) ( - ) ( - )
Moser Baer Solar System Private Limited - 305 - -
( - ) (192,393) ( - ) ( - )
Moser Baer Solar Limited - 3,993,174 - -
( - ) (6,098,807) ( - ) ( - )
Moser Baer Entertainment Limited - 4,112 - -
( - ) ( - ) ( - ) ( - )
O M & T BV - - - -
( - ) (18,437,131) ( - ) ( - )
Others - 65,557 - - 9,048,604
( - ) (316,489) ( - ) ( - ) (28,647,186)
Entities on Total
87
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
(Figures in brackets are for the previous year)
Particulars Associates Subsidiaries Key Entities on Total management which key
personnel management and their personnel relatives have
significantinfluence
Reimbursement/ recovery against sales
O M & T BV - - - -
( - ) (208,048,690) ( - ) ( - )
Moser Baer Entertainment Limited - 1,090,337,775 - -
( - ) (2,328,207,700) ( - ) ( - )
Moser Baer Solar Limited - 24,511,564 - -
( - ) (24,498,644) ( - ) ( - )
Helios Photo Voltaic Limited (formerly known as Moser Baer Photo Voltaic Limited) - 11,332,294 - - 1,126,181,633
( - ) (1,081,710) ( - ) ( - ) (2,561,836,744)
Reimbursement/ recovery of expenses
Helios Photo Voltaic Limited (formerly known as Moser Baer Photo Voltaic Limited) - 246,388 - -
( - ) (63,620,255) ( - ) ( - )
Moser Baer Solar Limited - 412,679 - -
( - ) (426,400,026) ( - ) ( - )
Moser Baer Entertainment Limited - 2,895 - -
( - ) ( - ) ( - ) ( - )
Moser Baer Engineering and Construction Limited - - - 36,595,597
( - ) ( - ) ( - ) (53,661,854)
Others - 69,854 - - 37,327,413
( - ) (316,500) ( - ) ( - ) (543,998,635)
Payment by related party of our behalf
Helios Photo Voltaic Limited (formerly known as Moser Baer Photo Voltaic Limited) - 939,750 - - 939,750
( - ) ( - ) ( - ) ( - ) ( - )
Provision made/ balances written off
O M & T BV - 243,578,096 - -
( - ) ( - ) ( - ) ( - )
Peraround Limited - 632,787,612 - -
( - ) ( - ) ( - ) ( - )
Global Data Media FZ LLC 30,438,813 - - -
( - ) ( - ) ( - ) ( - )
Moser Baer Entertainment Limited - 400,000,000 - - 1,306,804,522
( - ) ( - ) ( - ) ( - ) ( - )
Purchase of semi-finished goods/ raw material/services
Moser Baer Entertainment Limited - 231,336 - -
( - ) (3,273,559) ( - ) ( - )
Helios Photo Voltaic Limited (formerly known as Moser Baer Photo Voltaic Limited) - 2,768,651 - -
( - ) (14,195) ( - ) ( - )
88
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
(Figures in brackets are for the previous year)
Particulars Associates Subsidiaries Key Entities on Total management which key
personnel management and their personnel relatives have
significantinfluence
Moser Baer Solar Limited - 9,345,107 - -
( - ) (1,570,195) ( - ) ( - )
O M & T BV - - - - 12,345,094
( - ) (213,569,933) ( - ) ( - ) (218,427,882)
Purchase of fixed assets
Moser Baer Technology Inc. - - - - -
( - ) (23,733,530) ( - ) ( - ) (23,733,530)
Expenses charged by related party
Helios Photo Voltaic Limited (formerly known as Moser Baer Photo Voltaic Limited) - 1,996 - -
( - ) (4,147,634) ( - ) ( - )
Peraround Limited - 8,497,000 - -
( - ) ( - ) ( - ) ( - )
Moser Baer Technologies Inc - 41,134,232 - -
( - ) ( - ) ( - ) ( - )
Moser Baer Solar Limited - 358,932,971 - - 408,566,199
( - ) (506,102,633) ( - ) ( - ) (510,250,267)
Payment made against expenses/services
Moser Baer Solar Limited - 2,649,682 - -
( - ) ( - ) ( - ) ( - )
Moser Baer Technologies Inc. - 34,780,580 - - 37,430,262
( - ) ( - ) ( - ) ( - ) ( - )
Payment made on behalf of related party
Moser Baer Entertainment Limited - 168,102 - - 168,102
( - ) (56,163) ( - ) ( - ) (56,163)
Loans and advances granted
Moser Baer Solar Limited - - - -
( - ) (169,336,785) ( - ) ( - )
Moser Baer Entertainment Limited - - - - -
( - ) (30,000,000) ( - ) ( - ) (199,336,785)
Repayment of loans and advances granted
Moser Baer Solar Limited - - - -
( - ) (169,336,785) ( - ) ( - )
Moser Baer Entertainment Limited - - - -
( - ) (13,000,000) ( - ) ( - )
Moser Baer Infrastructure & Developers Limited - - - - -
( - ) (3,500,000) ( - ) ( - ) (185,836,785)
Interest charges in respect of loans/ investments
Peraround Limited - 42,148,002 - -
( - ) (48,584,558) ( - ) ( - )
89
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
(Figures in brackets are for the previous year)
Particulars Associates Subsidiaries Key Entities on Total management which key
personnel management and their personnel relatives have
significantinfluence
Moser Baer Infrastructure & Developers Limited - 9,038,835 - -
( - ) (11,980,399) ( - ) ( - )
Moser Baer Solar Limited - 49,914,381 - -
( - ) (66,249,996) ( - ) ( - )
Moser Baer Entertainment Limited - 25,880,137 - - 126,981,355
( - ) (43,141,562) ( - ) ( - ) (169,956,515)
Interest received against loans
Moser Baer Infrastructure & Developers Limited - - - - -
( - ) (3,390,735) ( - ) ( - ) (3,390,735)
Provision for diminution in the value of long term investments
Helios Photo Voltaic Limited (formerly known as Moser Baer Photo Voltaic Limited) - 111,151,000 - -
( - ) ( - ) ( - ) ( - )
European Optic Media Technology GMBH - - - - 111,151,000
( - ) (168,852,376) ( - ) ( - ) (168,852,376)
Equity share allotted during the period
Deepak Puri - - 300,000,000 - 300,000,000
( - ) ( - ) ( - ) ( - ) ( - )
Share application money received during the current period
Deepak Puri - - 163,000,000 - 163,000,000
( - ) ( - ) (200,000,000) ( - ) (200,000,000)
Directors remuneration
Deepak Puri - - 25,185,077 -
( - ) ( - ) (4,800,000) ( - )
Nita Puri - - 3,187,503 - 28,372,580
( - ) ( - ) (4,250,000) ( - ) (9,050,000)
Outstanding receivables
In respect of sales or services
Global Data Media FZ LLC 110,494,136 - - -
(237,588,923) ( - ) ( - ) ( - )
O M & T BV - - - -
( - ) (277,844,971) ( - ) ( - )
Helios Photo Voltaic Limited (formerly
known as Moser Baer Photo Voltaic Limited) - 506,090,238 - -
( - ) (392,624,383) ( - ) ( - )
Moser Baer Solar Limited - 4,874,397,574 - -
( - ) (4,776,949,709) ( - ) ( - )
Moser Baer Solar System Private Limited - 1,992,404 - -
( - ) (1,992,099) ( - ) ( - )
88
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
(Figures in brackets are for the previous year)
Particulars Associates Subsidiaries Key Entities on Total management which key
personnel management and their personnel relatives have
significantinfluence
Moser Baer Solar Limited - 9,345,107 - -
( - ) (1,570,195) ( - ) ( - )
O M & T BV - - - - 12,345,094
( - ) (213,569,933) ( - ) ( - ) (218,427,882)
Purchase of fixed assets
Moser Baer Technology Inc. - - - - -
( - ) (23,733,530) ( - ) ( - ) (23,733,530)
Expenses charged by related party
Helios Photo Voltaic Limited (formerly known as Moser Baer Photo Voltaic Limited) - 1,996 - -
( - ) (4,147,634) ( - ) ( - )
Peraround Limited - 8,497,000 - -
( - ) ( - ) ( - ) ( - )
Moser Baer Technologies Inc - 41,134,232 - -
( - ) ( - ) ( - ) ( - )
Moser Baer Solar Limited - 358,932,971 - - 408,566,199
( - ) (506,102,633) ( - ) ( - ) (510,250,267)
Payment made against expenses/services
Moser Baer Solar Limited - 2,649,682 - -
( - ) ( - ) ( - ) ( - )
Moser Baer Technologies Inc. - 34,780,580 - - 37,430,262
( - ) ( - ) ( - ) ( - ) ( - )
Payment made on behalf of related party
Moser Baer Entertainment Limited - 168,102 - - 168,102
( - ) (56,163) ( - ) ( - ) (56,163)
Loans and advances granted
Moser Baer Solar Limited - - - -
( - ) (169,336,785) ( - ) ( - )
Moser Baer Entertainment Limited - - - - -
( - ) (30,000,000) ( - ) ( - ) (199,336,785)
Repayment of loans and advances granted
Moser Baer Solar Limited - - - -
( - ) (169,336,785) ( - ) ( - )
Moser Baer Entertainment Limited - - - -
( - ) (13,000,000) ( - ) ( - )
Moser Baer Infrastructure & Developers Limited - - - - -
( - ) (3,500,000) ( - ) ( - ) (185,836,785)
Interest charges in respect of loans/ investments
Peraround Limited - 42,148,002 - -
( - ) (48,584,558) ( - ) ( - )
89
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
(Figures in brackets are for the previous year)
Particulars Associates Subsidiaries Key Entities on Total management which key
personnel management and their personnel relatives have
significantinfluence
Moser Baer Infrastructure & Developers Limited - 9,038,835 - -
( - ) (11,980,399) ( - ) ( - )
Moser Baer Solar Limited - 49,914,381 - -
( - ) (66,249,996) ( - ) ( - )
Moser Baer Entertainment Limited - 25,880,137 - - 126,981,355
( - ) (43,141,562) ( - ) ( - ) (169,956,515)
Interest received against loans
Moser Baer Infrastructure & Developers Limited - - - - -
( - ) (3,390,735) ( - ) ( - ) (3,390,735)
Provision for diminution in the value of long term investments
Helios Photo Voltaic Limited (formerly known as Moser Baer Photo Voltaic Limited) - 111,151,000 - -
( - ) ( - ) ( - ) ( - )
European Optic Media Technology GMBH - - - - 111,151,000
( - ) (168,852,376) ( - ) ( - ) (168,852,376)
Equity share allotted during the period
Deepak Puri - - 300,000,000 - 300,000,000
( - ) ( - ) ( - ) ( - ) ( - )
Share application money received during the current period
Deepak Puri - - 163,000,000 - 163,000,000
( - ) ( - ) (200,000,000) ( - ) (200,000,000)
Directors remuneration
Deepak Puri - - 25,185,077 -
( - ) ( - ) (4,800,000) ( - )
Nita Puri - - 3,187,503 - 28,372,580
( - ) ( - ) (4,250,000) ( - ) (9,050,000)
Outstanding receivables
In respect of sales or services
Global Data Media FZ LLC 110,494,136 - - -
(237,588,923) ( - ) ( - ) ( - )
O M & T BV - - - -
( - ) (277,844,971) ( - ) ( - )
Helios Photo Voltaic Limited (formerly
known as Moser Baer Photo Voltaic Limited) - 506,090,238 - -
( - ) (392,624,383) ( - ) ( - )
Moser Baer Solar Limited - 4,874,397,574 - -
( - ) (4,776,949,709) ( - ) ( - )
Moser Baer Solar System Private Limited - 1,992,404 - -
( - ) (1,992,099) ( - ) ( - )
90
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
(Figures in brackets are for the previous year)
Particulars Associates Subsidiaries Key Entities on Total management which key
personnel management and their personnel relatives have
significantinfluence
Moser Baer Entertainment Limited - 1,651,931,829 - -
( - ) (1,539,485,849) ( - ) ( - )
Moser Baer Engineering and Construction Limited - - - 66,235,986
( - ) ( - ) ( - ) (50,889,186)
Others - 814 - - 7,211,142,981
( - ) ( - ) ( - ) ( - ) (7,277,375,120)
In respect of loans to subsidiary
Peraround Limited - 809,849,259 - -
( - ) (914,299,084) ( - ) ( - )
Moser Baer Infrastructure & Developers Limited - 86,000,000 - -
( - ) (86,000,000) ( - ) ( - )
Moser Baer Entertainment Limited - - - -
( - ) (300,000,000) ( - ) ( - )
Others - - - - 895,849,259
( - ) ( - ) ( - ) ( - ) (1,300,299,084)
In respect of advance to subsidiary
Moser Baer Entertainment Limited - 17,000,000 - - 17,000,000
( - ) (17,000,000) ( - ) ( - ) (17,000,000)
In respect of interest accrued on loans/ investment
Peraround Limited - - - -
( - ) (229,617,040) ( - ) ( - )
Moser Baer Infrastructure & Developers Limited - 36,707,293 - -
( - ) (27,758,846) ( - ) ( - )
Moser Baer Entertainment Limited - - - -
( - ) (72,296,840) ( - ) ( - )
Moser Baer Solar Limited - 152,878,944 - - 189,586,237
( - ) (104,007,682) ( - ) ( - ) (433,680,408)
In respect of debentures
Moser Baer Solar Limited - 500,000,000 - - 500,000,000
( - ) (500,000,000) ( - ) ( - ) (500,000,000)
In respect of managerial remuneration
Deepak Puri - - 966 -
( - ) ( - ) (16,081,627) ( - )
Ratul Puri - - 1,147,902 - 1,148,868
( - ) ( - ) (1,147,902) ( - ) (17,229,529)
Outstanding payables
In respect of expenses/purchases (included in due to subsidiaries)
O M & T BV - - - -
( - ) (89,462,256) ( - ) ( - )
Moser Baer Solar Limited - 654,091,208 - -
( - ) (486,059,316) ( - ) ( - )
91
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
(Figures in brackets are for the previous year)
Particulars Associates Subsidiaries Key Entities on Total management which key
personnel management and their personnel relatives have
significantinfluence
Cubic Technologies B.V - 10,119,966 - -
( - ) (8,273,596) ( - ) ( - )
Moser Baer Technology - 9,960,145 - -
( - ) (7,832,006) ( - ) ( - )
Helios Photo Voltaic Limited (formerly known as Moser Baer Photo Voltaic Limited) - 7,337,423 - -
( - ) (4,142,653) ( - ) ( - )
Peraround Limited - 8,497,000 - - 690,005,742
( - ) ( - ) ( - ) ( - ) (595,769,827)
In respect of other advances
European Optic Media Technology GMBH - 1,380,841 - - 1,380,841
( - ) (1,188,379) ( - ) ( - ) (1,188,379)
In respect of security deposit received for lease
Helios Photo Voltaic Limited (formerly known as Moser Baer Photo Voltaic Limited) - 380,000,000 - -
( - ) (380,000,000) ( - ) ( - )
Moser Baer Solar Limited - 1,335,000,000 - -
( - ) (1,335,000,000) ( - ) ( - )
Moser Baer Engineering and Construction Limited - - - 12,000,000 1,727,000,000
( - ) ( - ) ( - ) (12,000,000) (1,727,000,000)
In respect of managerial remuneration
Nita Puri - - 414,182 - 414,182
( - ) ( - ) (450,432) ( - ) (450,432)
(c) Other arrangements
(Figures in brackets are for the previous year)
(i) Details of corporate guarantees provided on behalf of subsidiary companies
Particulars Amount
Helios Photo Voltaic Limited (formerly known as Moser Baer Photo Voltaic Limited) 9,991,175,000
(14,436,712,500)
Moser Baer Solar Limited 10,439,800,000
(10,241,737,500)
(ii) Details of corporate guarantees provided by subsidiary companies on behalf of the Company
Particulars Amount
Moser Baer Entertainment Limited 12,343,836
(12,343,836)
Jointly by Moser Baer Entertainment Limited and Moser Baer Solar Limited 62,743,734
(62,743,734)
90
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
(Figures in brackets are for the previous year)
Particulars Associates Subsidiaries Key Entities on Total management which key
personnel management and their personnel relatives have
significantinfluence
Moser Baer Entertainment Limited - 1,651,931,829 - -
( - ) (1,539,485,849) ( - ) ( - )
Moser Baer Engineering and Construction Limited - - - 66,235,986
( - ) ( - ) ( - ) (50,889,186)
Others - 814 - - 7,211,142,981
( - ) ( - ) ( - ) ( - ) (7,277,375,120)
In respect of loans to subsidiary
Peraround Limited - 809,849,259 - -
( - ) (914,299,084) ( - ) ( - )
Moser Baer Infrastructure & Developers Limited - 86,000,000 - -
( - ) (86,000,000) ( - ) ( - )
Moser Baer Entertainment Limited - - - -
( - ) (300,000,000) ( - ) ( - )
Others - - - - 895,849,259
( - ) ( - ) ( - ) ( - ) (1,300,299,084)
In respect of advance to subsidiary
Moser Baer Entertainment Limited - 17,000,000 - - 17,000,000
( - ) (17,000,000) ( - ) ( - ) (17,000,000)
In respect of interest accrued on loans/ investment
Peraround Limited - - - -
( - ) (229,617,040) ( - ) ( - )
Moser Baer Infrastructure & Developers Limited - 36,707,293 - -
( - ) (27,758,846) ( - ) ( - )
Moser Baer Entertainment Limited - - - -
( - ) (72,296,840) ( - ) ( - )
Moser Baer Solar Limited - 152,878,944 - - 189,586,237
( - ) (104,007,682) ( - ) ( - ) (433,680,408)
In respect of debentures
Moser Baer Solar Limited - 500,000,000 - - 500,000,000
( - ) (500,000,000) ( - ) ( - ) (500,000,000)
In respect of managerial remuneration
Deepak Puri - - 966 -
( - ) ( - ) (16,081,627) ( - )
Ratul Puri - - 1,147,902 - 1,148,868
( - ) ( - ) (1,147,902) ( - ) (17,229,529)
Outstanding payables
In respect of expenses/purchases (included in due to subsidiaries)
O M & T BV - - - -
( - ) (89,462,256) ( - ) ( - )
Moser Baer Solar Limited - 654,091,208 - -
( - ) (486,059,316) ( - ) ( - )
91
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
(Figures in brackets are for the previous year)
Particulars Associates Subsidiaries Key Entities on Total management which key
personnel management and their personnel relatives have
significantinfluence
Cubic Technologies B.V - 10,119,966 - -
( - ) (8,273,596) ( - ) ( - )
Moser Baer Technology - 9,960,145 - -
( - ) (7,832,006) ( - ) ( - )
Helios Photo Voltaic Limited (formerly known as Moser Baer Photo Voltaic Limited) - 7,337,423 - -
( - ) (4,142,653) ( - ) ( - )
Peraround Limited - 8,497,000 - - 690,005,742
( - ) ( - ) ( - ) ( - ) (595,769,827)
In respect of other advances
European Optic Media Technology GMBH - 1,380,841 - - 1,380,841
( - ) (1,188,379) ( - ) ( - ) (1,188,379)
In respect of security deposit received for lease
Helios Photo Voltaic Limited (formerly known as Moser Baer Photo Voltaic Limited) - 380,000,000 - -
( - ) (380,000,000) ( - ) ( - )
Moser Baer Solar Limited - 1,335,000,000 - -
( - ) (1,335,000,000) ( - ) ( - )
Moser Baer Engineering and Construction Limited - - - 12,000,000 1,727,000,000
( - ) ( - ) ( - ) (12,000,000) (1,727,000,000)
In respect of managerial remuneration
Nita Puri - - 414,182 - 414,182
( - ) ( - ) (450,432) ( - ) (450,432)
(c) Other arrangements
(Figures in brackets are for the previous year)
(i) Details of corporate guarantees provided on behalf of subsidiary companies
Particulars Amount
Helios Photo Voltaic Limited (formerly known as Moser Baer Photo Voltaic Limited) 9,991,175,000
(14,436,712,500)
Moser Baer Solar Limited 10,439,800,000
(10,241,737,500)
(ii) Details of corporate guarantees provided by subsidiary companies on behalf of the Company
Particulars Amount
Moser Baer Entertainment Limited 12,343,836
(12,343,836)
Jointly by Moser Baer Entertainment Limited and Moser Baer Solar Limited 62,743,734
(62,743,734)
92
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
41 Loss per share
Particulars For the period ended For the year ended 31 December 2013 31 March 2013
(a) Calculation of weighted average number of equity shares
1. For basic EPS
No. of shares at the beginning of the period/ year 168,306,104 168,306,104
Total number of equity shares outstanding at the end of the period/ year 198,306,104 168,306,104
Weighted average number of equity shares outstanding during the period/ year 185,578,831 168,306,104
2. For diluted EPS
Weighted average number of equity shares outstanding during the period/ year as computed above 185,578,831 168,306,104
Weighted average number of stock options outstanding during the period/ year - -
Weighted average number of equity shares outstanding during the period/ year for diluted EPS 185,578,831 168,306,104
(b) Net loss after tax available for equity shareholders (4,466,627,030) (4,591,663,670)
Loss per share (face value per share Rs. 10 each)
- Basic (24.07) (27.28)
- Diluted (24.07) (27.28)
42 Segment information
The Company is primarily in the business of manufacture and sale of Optical Storage Media. The other activities of the Company comprise creation/ replication and distribution of content, sales of consumer electronic products and operations and maintenance of sector specific Special Economic Zone for non-conventional energy.As the single financial report contains both consolidated financial statements and the separate financial statements of Moser Baer India Limited (the parent), segment information has been presented only on the basis of consolidated financial statements of the period ended 31 December 2013.
43 Employee benefits
The Company has classified the various benefits provided to employees as under:
A Defined contribution plans
During the period, the Company has recognised the following amounts in the statement of profit and loss:
(i) Provident fund
Particulars For the period ended For the year ended 31 December 2013 31 March 2013
Employers’ contribution to provident fund* 34,189,886 46,918,316
(ii) State plans
Particulars For the period ended For the year ended 31 December 2013 31 March 2013
Employers’ contribution to Employee’s State Insurance Act, 1948 2,895,404 10,247,769
Employers’ contribution to Employee’s Pension Scheme, 1995 16,806,146 24,360,341
* Included in contribution to provident and employee state insurance funds under personnel expenses (refer note 28)
93
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
B Defined benefit plans
(i) In accordance with Accounting Standard 15, the liability in respect of defined benefit plans, namely gratuity and unavailed earned leaves has been determined based on actuarial valuation based on the following assumptions:
Particulars Unavailed leaves (unfunded) Employee’s gratuity fund
For the period ended For the year ended For the period ended For the year ended 31 December 2013 31 March 2013 31 December 2013 31 March 2013
Discount rate (per annum) 8.95% 8.00% 8.95% 8.00%
Rate of increase in compensation levels 10.00% 10.00% 10.00% 10.00%
Rate of return on plan assets - - 9.40% 9.40%
Expected average remaining working lives of employees (years) 4.96 7.43 4.96 7.43
(ii) Changes in the present value of obligation
Particulars Unavailed leaves (unfunded) Employee’s gratuity fund
For the period ended For the year ended For the period ended For the year ended 31 December 2013 31 March 2013 31 December 2013 31 March 2013
Present value of obligation at the beginning of the period/ year 80,875,157 87,447,743 246,239,750 224,540,108
Interest cost 5,149,126 8,197,584 14,969,937 20,334,817
Current service cost 9,107,032 13,000,098 19,114,930 24,725,267
Benefits paid (9,107,987) (10,254,192) (33,979,629) (25,628,035)
Equitable Interest transferred* - - (3,353,062) -
Actuarial gain on obligations (6,870,892) (17,516,076) (7,110,593) 2,267,593
Present value of obligation at the end of the period/ year 79,152,436 80,875,157 235,881,333 246,239,750
*There has been transfer of employees from the Company to Moser Baer Solar Limited (MBSL) . Pursuant to which the Company has transferred the present value of obligation and fair value of planned asset of the transferred employees to MBSL.
(iii) Changes in the fair value of plan assets
Particulars Employee’s gratuity fund
For the period ended For the year ended31 December 2013 31 March 2013
Fair value of plan assets at the beginning of the period/ year 108,194,753 123,143,341
Expected return on plan assets 6,340,574 10,370,956
Actuarial gains and losses - 308,491
Contributions - -
Benefits paid (33,979,629) (25,628,035)
Equitable Interest transferred* (3,353,062) -
Fair value of plan assets at the end of the period/ year 77,202,636 108,194,753
*There has been transfer of employees from the Company to Moser Baer Solar Limited (MBSL) . Pursuant to which the Company has transferred the present value of obligation and fair value of planned asset of the transferred employees to MBSL.
(iv) The present value of the defined benefit obligation, the fair value of the plan assets and the surplus or deficit in the plan; and experience adjustments arising on the plan liabilities and the plan assets.
Particulars Employee’s gratuity fund
For the period ended For the year ended For the year ended For the year ended For the year ended 31 December 2013 31 March 2013 31 March 2012 31 March 2011 31 March 2010
Present value of defined benefit obligation 235,881,333 246,239,750 224,540,108 196,614,786 182,439,484
Fair value of plan assets 77,202,636 108,194,753 123,143,341 130,934,270 133,153,245
Deficit in the plan assets (158,678,697) (138,044,997) (101,396,767) (65,680,516) (49,286,239)
The expected contribution on account of gratuity for the year ending 31 December 2013 can’t be ascertained at this stage.
92
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
41 Loss per share
Particulars For the period ended For the year ended 31 December 2013 31 March 2013
(a) Calculation of weighted average number of equity shares
1. For basic EPS
No. of shares at the beginning of the period/ year 168,306,104 168,306,104
Total number of equity shares outstanding at the end of the period/ year 198,306,104 168,306,104
Weighted average number of equity shares outstanding during the period/ year 185,578,831 168,306,104
2. For diluted EPS
Weighted average number of equity shares outstanding during the period/ year as computed above 185,578,831 168,306,104
Weighted average number of stock options outstanding during the period/ year - -
Weighted average number of equity shares outstanding during the period/ year for diluted EPS 185,578,831 168,306,104
(b) Net loss after tax available for equity shareholders (4,466,627,030) (4,591,663,670)
Loss per share (face value per share Rs. 10 each)
- Basic (24.07) (27.28)
- Diluted (24.07) (27.28)
42 Segment information
The Company is primarily in the business of manufacture and sale of Optical Storage Media. The other activities of the Company comprise creation/ replication and distribution of content, sales of consumer electronic products and operations and maintenance of sector specific Special Economic Zone for non-conventional energy.As the single financial report contains both consolidated financial statements and the separate financial statements of Moser Baer India Limited (the parent), segment information has been presented only on the basis of consolidated financial statements of the period ended 31 December 2013.
43 Employee benefits
The Company has classified the various benefits provided to employees as under:
A Defined contribution plans
During the period, the Company has recognised the following amounts in the statement of profit and loss:
(i) Provident fund
Particulars For the period ended For the year ended 31 December 2013 31 March 2013
Employers’ contribution to provident fund* 34,189,886 46,918,316
(ii) State plans
Particulars For the period ended For the year ended 31 December 2013 31 March 2013
Employers’ contribution to Employee’s State Insurance Act, 1948 2,895,404 10,247,769
Employers’ contribution to Employee’s Pension Scheme, 1995 16,806,146 24,360,341
* Included in contribution to provident and employee state insurance funds under personnel expenses (refer note 28)
93
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
B Defined benefit plans
(i) In accordance with Accounting Standard 15, the liability in respect of defined benefit plans, namely gratuity and unavailed earned leaves has been determined based on actuarial valuation based on the following assumptions:
Particulars Unavailed leaves (unfunded) Employee’s gratuity fund
For the period ended For the year ended For the period ended For the year ended 31 December 2013 31 March 2013 31 December 2013 31 March 2013
Discount rate (per annum) 8.95% 8.00% 8.95% 8.00%
Rate of increase in compensation levels 10.00% 10.00% 10.00% 10.00%
Rate of return on plan assets - - 9.40% 9.40%
Expected average remaining working lives of employees (years) 4.96 7.43 4.96 7.43
(ii) Changes in the present value of obligation
Particulars Unavailed leaves (unfunded) Employee’s gratuity fund
For the period ended For the year ended For the period ended For the year ended 31 December 2013 31 March 2013 31 December 2013 31 March 2013
Present value of obligation at the beginning of the period/ year 80,875,157 87,447,743 246,239,750 224,540,108
Interest cost 5,149,126 8,197,584 14,969,937 20,334,817
Current service cost 9,107,032 13,000,098 19,114,930 24,725,267
Benefits paid (9,107,987) (10,254,192) (33,979,629) (25,628,035)
Equitable Interest transferred* - - (3,353,062) -
Actuarial gain on obligations (6,870,892) (17,516,076) (7,110,593) 2,267,593
Present value of obligation at the end of the period/ year 79,152,436 80,875,157 235,881,333 246,239,750
*There has been transfer of employees from the Company to Moser Baer Solar Limited (MBSL) . Pursuant to which the Company has transferred the present value of obligation and fair value of planned asset of the transferred employees to MBSL.
(iii) Changes in the fair value of plan assets
Particulars Employee’s gratuity fund
For the period ended For the year ended31 December 2013 31 March 2013
Fair value of plan assets at the beginning of the period/ year 108,194,753 123,143,341
Expected return on plan assets 6,340,574 10,370,956
Actuarial gains and losses - 308,491
Contributions - -
Benefits paid (33,979,629) (25,628,035)
Equitable Interest transferred* (3,353,062) -
Fair value of plan assets at the end of the period/ year 77,202,636 108,194,753
*There has been transfer of employees from the Company to Moser Baer Solar Limited (MBSL) . Pursuant to which the Company has transferred the present value of obligation and fair value of planned asset of the transferred employees to MBSL.
(iv) The present value of the defined benefit obligation, the fair value of the plan assets and the surplus or deficit in the plan; and experience adjustments arising on the plan liabilities and the plan assets.
Particulars Employee’s gratuity fund
For the period ended For the year ended For the year ended For the year ended For the year ended 31 December 2013 31 March 2013 31 March 2012 31 March 2011 31 March 2010
Present value of defined benefit obligation 235,881,333 246,239,750 224,540,108 196,614,786 182,439,484
Fair value of plan assets 77,202,636 108,194,753 123,143,341 130,934,270 133,153,245
Deficit in the plan assets (158,678,697) (138,044,997) (101,396,767) (65,680,516) (49,286,239)
The expected contribution on account of gratuity for the year ending 31 December 2013 can’t be ascertained at this stage.
94
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
Particulars Unavailed leaves (unfunded)
For the period ended For the year ended For the year ended For the year ended For the year ended 31 December 2013 31 March 2013 31 March 2012 31 March 2011 31 March 2010
Present value of defined benefit obligation 79,152,436 80,875,157 87,447,743 81,531,908 83,452,256
Fair value of plan assets - - - - -
Deficit in the plan assets (79,152,436) (80,875,157) (87,447,743) (81,531,908) (83,452,256)
(v) Expenses recognised in the statement of profit and loss
Particulars Unavailed leaves (unfunded) Employee’s gratuity fund
For the period ended For the year ended For the period ended For the year ended 31 December 2013 31 March 2013 31 December 2013 31 March 2013
Current service cost 9,107,032 13,000,098 19,114,930 24,725,267
Interest cost 5,149,126 8,197,584 14,969,937 20,334,817
Expected return on plan assets - - (6,340,574) (10,370,956)
Net actuarial (gain)/loss recognized in the period/ year (6,870,892) (17,516,076) (7,110,593) 1,959,102
Total expenses recognized in statement of profit and loss *7,385,266 *3,681,606 20,633,700 36,648,230
* Included in salaries, wages and bonus expenses (refer note 28)
In respect of the employee’s gratuity fund, constitution of plan assets is not readily available from Life Insurance Corporation of India.
44 Foreign currency convertible bonds
(a) The utilisation of the balance proceeds of zero coupon foreign currency convertible bonds is as under:
Particulars As at 31 December 2013 As at 31 March 2013
USD INR* USD INR*
Funds available at the beginning of the period/ year 142,709 7,746,966 147,911 7,525,709
Less: Bank charges 3,608 221,025 5,202 284,952
Unutilized issue proceeds # 139,101 8,597,861 142,709 7,746,966
# Restated as at period end.
* Net of foreign exchange gain of Rs. 1,071,920 for the period ended 31 December 2013 and loss of Rs. 506,209 for the year ended 31 March 2013.
(b) Premium on redemption of foreign currency convertible bonds: movement from beginning to end of reporting period as follows:
Particulars As at As at 31 December 2013 31 March 2013
Opening balance 2,399,718,659 1,793,150,173
Add: Provision for the period/ year 776,861,039 606,568,486
3,176,579,698 2,399,718,659
Less: Amount disclosed as other current liabilities (refer note 12) 2,032,527,592 1,784,830,756
Balance in short term provisions (refer note 13) 1,144,052,106 614,887,903
Premium payable on redemption of foreign currency convertible bonds accrued up to 31 December 2013 calculated on prorata basis Rs. 3,176,579,698 (previous year Rs. 2,399,718,659 has been fully provided for and charged to securities premium account. In the event that the conversion option is exercised by the holders of foreign currency convertible bonds in the future, the amount of premium charged to the securities premium account shall be written back to the securities premium account.
(c) Pursuant to the notification issued by The Ministry of Corporate Affairs dated 11 May 2011 read with the notification issued on 31 March 2009, the Company has chosen to avail the option to accumulate exchange differences arising on long term foreign currency monetary items in the “Foreign Currency Monetary Item Translation Difference Account”. Amount
95
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
remaining to be amortised in this account is as under:
Particulars As at 31 December 2013 31 March 2013
Amortisation charged to statement of profit and loss - 515,366,123
(d) The outstanding foreign currency convertible bonds (FCCBs) aggregating to principal value of USD 88,500,000 (equivalent to Rs 5,471,955,000) matured for redemption on 21 June 2012, which have since been claimed by the trustee of the bondholders. The Company has received approval from the Reserve Bank of India to extend the redemption date of bonds and is in discussions with the bondholders, through the Trustee, to re-structure the terms of these bonds. Pending acceptance by the bondholders and approval from the concerned regulatory authorities of the terms proposed by the Company, the financial obligations of the Company, other than premium on redemption, are presently not reasonably determinable, and hence have not been provided for. The petition under section 434 of the Companies Act, 1956, filed by the trustee on behalf of certain bondholders with the Hon’ble High Court of Delhi, which has since been admitted, and continues to be sub-judice.
45 Going concern
The Company has incurred loss of Rs 4,466,627,030 during the nine months period ended 31 December 2013, which along with the accumulated losses as of 31 December 2013 has completely eroded its net worth as on 31 December 2013. The Company’s corporate debt restructuring scheme to re-structure the borrowings from secured lenders has already been approved and is confident of re-structuring the FCCB obligation as described in note 44(d), in the terms proposed by the Company. Pending the outcome of aforementioned discussions with the bondholders and the related litigation, successful implementation of corporate debt restructuring scheme in terms proposed by the Company, which are materially uncertain, the financial statements of the Company have been prepared on going concern basis.
46 Based on the information available with the Company, the Company has identified 32 vendors as micro, small and medium enterprises as defined in the Micro, Small and Medium Enterprises Development Act, 2006. The balance due to such vendors has been disclosed separately under trade payables (refer note 11).
Disclosure relating to dues outstanding to micro, small and medium enterprises as defined in Micro, Small and Medium Enterprises Development Act, 2006
Particulars As at As at 31 December 2013 31 March 2013
(a) Amount remaining unpaid to micro ,small and medium enterprises at the end of period/ year
Principal amount 70,647,794 64,445,555
Interest thereon 27,709,404 18,298,189
Total 98,357,198 82,743,744
(b) Amount of payments made to micro, small and medium enterprises beyond the appointed date during the period/ year
Principal amount 176,733,645 194,062,011
Interest actually paid u/s 16 of the act. - -
Total 176,733,645 194,062,011
(c) Interest accrued (including interest u/s 16 of the act) and remaining unpaid at the end of the period/ year
Interest accrued during the period/ year 9,411,214 4,394,302
Interest remaining unpaid during the period/ year 27,709,404 18,298,189
47 Details of defaults in repayment of dues to the banks/ financial institution *:
Particulars Due date Amount Delay in days
Banks 31 May 2013 2,717,758 214
30 June 2013 3,175,432 184
31 July 2013 3,303,618 153
31 August 2013 5,304,084 122
30 September 2013 48,551,632 92
31 October 2013 58,253,141 61
30 November 2013 72,820,010 31
As at
94
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
Particulars Unavailed leaves (unfunded)
For the period ended For the year ended For the year ended For the year ended For the year ended 31 December 2013 31 March 2013 31 March 2012 31 March 2011 31 March 2010
Present value of defined benefit obligation 79,152,436 80,875,157 87,447,743 81,531,908 83,452,256
Fair value of plan assets - - - - -
Deficit in the plan assets (79,152,436) (80,875,157) (87,447,743) (81,531,908) (83,452,256)
(v) Expenses recognised in the statement of profit and loss
Particulars Unavailed leaves (unfunded) Employee’s gratuity fund
For the period ended For the year ended For the period ended For the year ended 31 December 2013 31 March 2013 31 December 2013 31 March 2013
Current service cost 9,107,032 13,000,098 19,114,930 24,725,267
Interest cost 5,149,126 8,197,584 14,969,937 20,334,817
Expected return on plan assets - - (6,340,574) (10,370,956)
Net actuarial (gain)/loss recognized in the period/ year (6,870,892) (17,516,076) (7,110,593) 1,959,102
Total expenses recognized in statement of profit and loss *7,385,266 *3,681,606 20,633,700 36,648,230
* Included in salaries, wages and bonus expenses (refer note 28)
In respect of the employee’s gratuity fund, constitution of plan assets is not readily available from Life Insurance Corporation of India.
44 Foreign currency convertible bonds
(a) The utilisation of the balance proceeds of zero coupon foreign currency convertible bonds is as under:
Particulars As at 31 December 2013 As at 31 March 2013
USD INR* USD INR*
Funds available at the beginning of the period/ year 142,709 7,746,966 147,911 7,525,709
Less: Bank charges 3,608 221,025 5,202 284,952
Unutilized issue proceeds # 139,101 8,597,861 142,709 7,746,966
# Restated as at period end.
* Net of foreign exchange gain of Rs. 1,071,920 for the period ended 31 December 2013 and loss of Rs. 506,209 for the year ended 31 March 2013.
(b) Premium on redemption of foreign currency convertible bonds: movement from beginning to end of reporting period as follows:
Particulars As at As at 31 December 2013 31 March 2013
Opening balance 2,399,718,659 1,793,150,173
Add: Provision for the period/ year 776,861,039 606,568,486
3,176,579,698 2,399,718,659
Less: Amount disclosed as other current liabilities (refer note 12) 2,032,527,592 1,784,830,756
Balance in short term provisions (refer note 13) 1,144,052,106 614,887,903
Premium payable on redemption of foreign currency convertible bonds accrued up to 31 December 2013 calculated on prorata basis Rs. 3,176,579,698 (previous year Rs. 2,399,718,659 has been fully provided for and charged to securities premium account. In the event that the conversion option is exercised by the holders of foreign currency convertible bonds in the future, the amount of premium charged to the securities premium account shall be written back to the securities premium account.
(c) Pursuant to the notification issued by The Ministry of Corporate Affairs dated 11 May 2011 read with the notification issued on 31 March 2009, the Company has chosen to avail the option to accumulate exchange differences arising on long term foreign currency monetary items in the “Foreign Currency Monetary Item Translation Difference Account”. Amount
95
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
remaining to be amortised in this account is as under:
Particulars As at 31 December 2013 31 March 2013
Amortisation charged to statement of profit and loss - 515,366,123
(d) The outstanding foreign currency convertible bonds (FCCBs) aggregating to principal value of USD 88,500,000 (equivalent to Rs 5,471,955,000) matured for redemption on 21 June 2012, which have since been claimed by the trustee of the bondholders. The Company has received approval from the Reserve Bank of India to extend the redemption date of bonds and is in discussions with the bondholders, through the Trustee, to re-structure the terms of these bonds. Pending acceptance by the bondholders and approval from the concerned regulatory authorities of the terms proposed by the Company, the financial obligations of the Company, other than premium on redemption, are presently not reasonably determinable, and hence have not been provided for. The petition under section 434 of the Companies Act, 1956, filed by the trustee on behalf of certain bondholders with the Hon’ble High Court of Delhi, which has since been admitted, and continues to be sub-judice.
45 Going concern
The Company has incurred loss of Rs 4,466,627,030 during the nine months period ended 31 December 2013, which along with the accumulated losses as of 31 December 2013 has completely eroded its net worth as on 31 December 2013. The Company’s corporate debt restructuring scheme to re-structure the borrowings from secured lenders has already been approved and is confident of re-structuring the FCCB obligation as described in note 44(d), in the terms proposed by the Company. Pending the outcome of aforementioned discussions with the bondholders and the related litigation, successful implementation of corporate debt restructuring scheme in terms proposed by the Company, which are materially uncertain, the financial statements of the Company have been prepared on going concern basis.
46 Based on the information available with the Company, the Company has identified 32 vendors as micro, small and medium enterprises as defined in the Micro, Small and Medium Enterprises Development Act, 2006. The balance due to such vendors has been disclosed separately under trade payables (refer note 11).
Disclosure relating to dues outstanding to micro, small and medium enterprises as defined in Micro, Small and Medium Enterprises Development Act, 2006
Particulars As at As at 31 December 2013 31 March 2013
(a) Amount remaining unpaid to micro ,small and medium enterprises at the end of period/ year
Principal amount 70,647,794 64,445,555
Interest thereon 27,709,404 18,298,189
Total 98,357,198 82,743,744
(b) Amount of payments made to micro, small and medium enterprises beyond the appointed date during the period/ year
Principal amount 176,733,645 194,062,011
Interest actually paid u/s 16 of the act. - -
Total 176,733,645 194,062,011
(c) Interest accrued (including interest u/s 16 of the act) and remaining unpaid at the end of the period/ year
Interest accrued during the period/ year 9,411,214 4,394,302
Interest remaining unpaid during the period/ year 27,709,404 18,298,189
47 Details of defaults in repayment of dues to the banks/ financial institution *:
Particulars Due date Amount Delay in days
Banks 31 May 2013 2,717,758 214
30 June 2013 3,175,432 184
31 July 2013 3,303,618 153
31 August 2013 5,304,084 122
30 September 2013 48,551,632 92
31 October 2013 58,253,141 61
30 November 2013 72,820,010 31
As at
96
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
Particulars Due date Amount Delay in days
Financial institution 31 May 2013 185,491 275
30 April 2013 1,258,371 245
31 May 2013 1,560,150 214
30 June 2013 2,843,718 184
31 July 2013 4,625,358 153
31 August 2013 4,625,358 122
30 September 2013 4,476,154 92
31 October 2013 4,742,574 61
30 November 2013 4,637,295 31
(* Refer note 7 for long term borrowing)
48 Prior period income
Particulars For the period ended For the year ended31 December 2013 31 March 2013
Excess employee benefits expense of previous year reversed 3,353,062 -
Total 3,353,062 -
49 Impairment of investments and other assets recoverable from subsidiaries
The Company has performed a detailed impairment assessment, including using valuations performed by an independent valuer for Helios Photo Voltaic Limited and Moser Baer Solar Limited, to determine whether the following investments in and advances or other receivables from Helios Photo Voltaic Limited, Moser Baer Solar Limited and Moser Baer Entertainment Limited are recoverable.
(Figures in bracket are for the previous year)
Entity Investment Loans and advances other and other as at
receivables liabilities 31 December 2013
(before impairment)
Helios Photo Voltaic Limited (HPVL) (formerly known as Moser Baer Photo Voltaic Limited) 1,464,092,260 7,535,597 498,471,570 387,337,423 1,582,762,004
(1,464,092,260) ( - ) (392,624,383) (384,142,653)
Moser Baer Solar Limited (MBSL)* 3,103,226,600 212,030,585 4,815,245,933 1,989,091,208 6,141,411,910
(3,103,226,600) (104,007,682) (4,582,499,709) (1,626,609,316)
Moser Baer Entertainment Limited (MBEL) 1,202,700,000 414,918,175 1,654,013,654 - 3,271,631,829
(1,202,700,000) (372,296,840) (1,556,485,849) ( - )
Total 5,770,018,860 634,484,357 6,967,731,157 (2,376,428,631) 10,995,805,743
* includes investments held through Photovoltaic Holdings Limited and Moser Baer Investments Limited amounting to Rs. 498,080,000 and Rs. 645,146,600 respectively.
Such assessment is based on certain adjustments inter-alia, successful implementation of new technologies, new product initiatives, external market conditions, regulatory benefits and conclusion of debt restructuring in the terms as proposed by HPVL and MBSL, which are materially uncertain. Based on such assessment, the management has recorded a provision for diminution of Rs. 111,510,000 in the investment of HPVL, and has written off Rs. 397,918,175 and Rs. 2,081,825 from loans and advances and trade and other receivables respectively of MBEL for the period ended 31 December 2013.
Trade and Trade creditors Net balance
97
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
50 Corresponding figures for the previous year have been regrouped / rearranged, wherever necessary to conform to current period classification.
51 The Company changed its financial year from 31 March to 31 December and consequently, current financial year consist of nine months period from April 2013 to December 2013. Accordingly, current financial year figures are not comparable with those of the previous year.
For Walker, Chandiok & Co For and on behalf of the board of directors ofChartered Accountants MOSER BAER INDIA LIMITED
per Ashish Gupta Deepak Puri Nita PuriPartner Chairman and Director
Managing Director
Place: New Delhi Yogesh Mathur Minni KatariyaDate: 28 February 2014 Group CFO Head Legal and
Company Secretary
96
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
Particulars Due date Amount Delay in days
Financial institution 31 May 2013 185,491 275
30 April 2013 1,258,371 245
31 May 2013 1,560,150 214
30 June 2013 2,843,718 184
31 July 2013 4,625,358 153
31 August 2013 4,625,358 122
30 September 2013 4,476,154 92
31 October 2013 4,742,574 61
30 November 2013 4,637,295 31
(* Refer note 7 for long term borrowing)
48 Prior period income
Particulars For the period ended For the year ended31 December 2013 31 March 2013
Excess employee benefits expense of previous year reversed 3,353,062 -
Total 3,353,062 -
49 Impairment of investments and other assets recoverable from subsidiaries
The Company has performed a detailed impairment assessment, including using valuations performed by an independent valuer for Helios Photo Voltaic Limited and Moser Baer Solar Limited, to determine whether the following investments in and advances or other receivables from Helios Photo Voltaic Limited, Moser Baer Solar Limited and Moser Baer Entertainment Limited are recoverable.
(Figures in bracket are for the previous year)
Entity Investment Loans and advances other and other as at
receivables liabilities 31 December 2013
(before impairment)
Helios Photo Voltaic Limited (HPVL) (formerly known as Moser Baer Photo Voltaic Limited) 1,464,092,260 7,535,597 498,471,570 387,337,423 1,582,762,004
(1,464,092,260) ( - ) (392,624,383) (384,142,653)
Moser Baer Solar Limited (MBSL)* 3,103,226,600 212,030,585 4,815,245,933 1,989,091,208 6,141,411,910
(3,103,226,600) (104,007,682) (4,582,499,709) (1,626,609,316)
Moser Baer Entertainment Limited (MBEL) 1,202,700,000 414,918,175 1,654,013,654 - 3,271,631,829
(1,202,700,000) (372,296,840) (1,556,485,849) ( - )
Total 5,770,018,860 634,484,357 6,967,731,157 (2,376,428,631) 10,995,805,743
* includes investments held through Photovoltaic Holdings Limited and Moser Baer Investments Limited amounting to Rs. 498,080,000 and Rs. 645,146,600 respectively.
Such assessment is based on certain adjustments inter-alia, successful implementation of new technologies, new product initiatives, external market conditions, regulatory benefits and conclusion of debt restructuring in the terms as proposed by HPVL and MBSL, which are materially uncertain. Based on such assessment, the management has recorded a provision for diminution of Rs. 111,510,000 in the investment of HPVL, and has written off Rs. 397,918,175 and Rs. 2,081,825 from loans and advances and trade and other receivables respectively of MBEL for the period ended 31 December 2013.
Trade and Trade creditors Net balance
97
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the financial statements for the nine months period ended 31 December 2013(All amounts in rupees, unless otherwise stated)
50 Corresponding figures for the previous year have been regrouped / rearranged, wherever necessary to conform to current period classification.
51 The Company changed its financial year from 31 March to 31 December and consequently, current financial year consist of nine months period from April 2013 to December 2013. Accordingly, current financial year figures are not comparable with those of the previous year.
For Walker, Chandiok & Co For and on behalf of the board of directors ofChartered Accountants MOSER BAER INDIA LIMITED
per Ashish Gupta Deepak Puri Nita PuriPartner Chairman and Director
Managing Director
Place: New Delhi Yogesh Mathur Minni KatariyaDate: 28 February 2014 Group CFO Head Legal and
Company Secretary
98
Independent Auditors’ Report To the Members of Moser Baer India Limited
1. We have audited the accompanying consolidated financial statements of Moser Baer India Limited, (“the Company”) and its subsidiaries and associates (hereinafter collectively referred to as the “Group”), which comprise the consolidated Balance Sheet as at December 31, 2013, and the consolidated Statement of Profit and Loss and consolidated Cash Flow Statement for the nine months period from April 1, 2013 to December 31, 2013, then ended (“the period”), and a summary of significant accounting policies and other explanatory information.
Management’s Responsibility for the Consolidated Financial Statements
2. Management is responsible for the preparation of these consolidated financial statements that give a true and fair view of the consolidated financial position, consolidated financial performance and consolidated cash flows of the Group in accordance with accounting principles generally accepted in India. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the consolidated financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
3. Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.
4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company’s preparation and presentation of the consolidated financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
6. In our opinion and to the best of our information and according to the explanations given to us and based on the consideration of the reports of the other auditors on the financial statements of the subsidiaries and associates as noted below, the consolidated financial statements give a true and fair view in conformity with the accounting principles generally accepted in India:
i) in the case of the consolidated Balance Sheet, of the state of affairs of the Group as at December 31, 2013; ii) in the case of the consolidated Statement of Profit and Loss, of the loss for the period, from April 1, 2013 to
December 31, 2013; and
iii) in the case of the consolidated Cash Flow Statement, of the cash flows for the period, from April 1, 2013 to December 31, 2013.
Emphasis of Matter
7. We draw attention to note 47(a) and 52 to the consolidated financial statements which describes the ongoing re-structuring discussion with FCCB holders, the related accounting, and the fact that the Group has incurred a net loss of Rs. 6,955,644,158 during the period April 1, 2013 to December 31, 2013, and as of December 31, 2013 the Group’s accumulated losses aggregate to Rs. 26,894,985,959 resulting in a complete erosion of the net worth of the Group. Further as on that date, the Group’s current liabilities exceed its current assets by Rs. 12,574,642,068. These conditions along with matters set forth in note 47(a) and 52, indicate the existence of material uncertainty that may cast significant doubt about the Group’s ability to continue as a going concern. Our opinion is not qualified in respect of this matter.
8. We draw attention to note 46 to the consolidated financial statements with respect to impairment assessment of fixed assets carried out by the management of two subsidiary companies, Moser Baer Solar Limited (MBSL) and Helios Photo Voltaic Limited (HPVL) (formerly known as Moser Baer Photo Voltaic Limited). The aforementioned assessments and conclusion thereof are based on certain assumptions, including, external market conditions of solar market, successful implementation of the Corporate Debt Restructuring Scheme, ability of new technology to perform, regulatory benefits, which are materially uncertain. Our opinion is not qualified in respect of this matter.
9. We draw attention to Note 37(b) to the consolidated financial statements regarding recoverability of advances and
99
settlement of claims with two vendors, aggregating to Rs. 367,444,659 and Rs. 1,934,561,872 respectively, which are under litigation. Pending ultimate outcome of the matter, which is presently unascertainable, no adjustments have been made to the financial statements. Our opinion is not qualified in respect of this matter.
Other Matter
10. We did not audit the financial statements of certain subsidiaries included in the consolidated financial statements, whose financial statements reflect total assets (after eliminating intra-group transactions) of Rs. 331,786,655 as at December 31, 2013; total revenues (after eliminating intra-group transactions) of Rs. 4,869,061 and net cash outflows aggregating to Rs. 44,495 for the period then ended. These financial statements have been audited by other auditors whose audit reports have been furnished to us by the management, and our audit opinion on the consolidated financial statements of the Group for the period then ended to the extent they relate to the financial statements not audited by us as stated in this paragraph is based solely on the audit reports of the other auditors. Our opinion is not qualified in respect of this matter.
11. The consolidated financial statements also include the unaudited financial statements of certain subsidiaries, whose financial statements reflect total assets (after eliminating intra-group transactions) of Rs. 124,919,756 as at December 31, 2013 and total revenues (after eliminating intra-group transactions) of Rs 55,873,214 and net cash outflows aggregating to Rs. 20,669,881 for the period then ended. These financial statements have been certified by the management. Our opinion is not qualified in respect of this matter.
For Walker, Chandiok & CoChartered AccountantsFirm Registration No.: 001076N
per Ashish GuptaPartner Membership No. 504662
Place: New DelhiDate: February 28, 2014
98
Independent Auditors’ Report To the Members of Moser Baer India Limited
1. We have audited the accompanying consolidated financial statements of Moser Baer India Limited, (“the Company”) and its subsidiaries and associates (hereinafter collectively referred to as the “Group”), which comprise the consolidated Balance Sheet as at December 31, 2013, and the consolidated Statement of Profit and Loss and consolidated Cash Flow Statement for the nine months period from April 1, 2013 to December 31, 2013, then ended (“the period”), and a summary of significant accounting policies and other explanatory information.
Management’s Responsibility for the Consolidated Financial Statements
2. Management is responsible for the preparation of these consolidated financial statements that give a true and fair view of the consolidated financial position, consolidated financial performance and consolidated cash flows of the Group in accordance with accounting principles generally accepted in India. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the consolidated financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
3. Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.
4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company’s preparation and presentation of the consolidated financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
6. In our opinion and to the best of our information and according to the explanations given to us and based on the consideration of the reports of the other auditors on the financial statements of the subsidiaries and associates as noted below, the consolidated financial statements give a true and fair view in conformity with the accounting principles generally accepted in India:
i) in the case of the consolidated Balance Sheet, of the state of affairs of the Group as at December 31, 2013; ii) in the case of the consolidated Statement of Profit and Loss, of the loss for the period, from April 1, 2013 to
December 31, 2013; and
iii) in the case of the consolidated Cash Flow Statement, of the cash flows for the period, from April 1, 2013 to December 31, 2013.
Emphasis of Matter
7. We draw attention to note 47(a) and 52 to the consolidated financial statements which describes the ongoing re-structuring discussion with FCCB holders, the related accounting, and the fact that the Group has incurred a net loss of Rs. 6,955,644,158 during the period April 1, 2013 to December 31, 2013, and as of December 31, 2013 the Group’s accumulated losses aggregate to Rs. 26,894,985,959 resulting in a complete erosion of the net worth of the Group. Further as on that date, the Group’s current liabilities exceed its current assets by Rs. 12,574,642,068. These conditions along with matters set forth in note 47(a) and 52, indicate the existence of material uncertainty that may cast significant doubt about the Group’s ability to continue as a going concern. Our opinion is not qualified in respect of this matter.
8. We draw attention to note 46 to the consolidated financial statements with respect to impairment assessment of fixed assets carried out by the management of two subsidiary companies, Moser Baer Solar Limited (MBSL) and Helios Photo Voltaic Limited (HPVL) (formerly known as Moser Baer Photo Voltaic Limited). The aforementioned assessments and conclusion thereof are based on certain assumptions, including, external market conditions of solar market, successful implementation of the Corporate Debt Restructuring Scheme, ability of new technology to perform, regulatory benefits, which are materially uncertain. Our opinion is not qualified in respect of this matter.
9. We draw attention to Note 37(b) to the consolidated financial statements regarding recoverability of advances and
99
settlement of claims with two vendors, aggregating to Rs. 367,444,659 and Rs. 1,934,561,872 respectively, which are under litigation. Pending ultimate outcome of the matter, which is presently unascertainable, no adjustments have been made to the financial statements. Our opinion is not qualified in respect of this matter.
Other Matter
10. We did not audit the financial statements of certain subsidiaries included in the consolidated financial statements, whose financial statements reflect total assets (after eliminating intra-group transactions) of Rs. 331,786,655 as at December 31, 2013; total revenues (after eliminating intra-group transactions) of Rs. 4,869,061 and net cash outflows aggregating to Rs. 44,495 for the period then ended. These financial statements have been audited by other auditors whose audit reports have been furnished to us by the management, and our audit opinion on the consolidated financial statements of the Group for the period then ended to the extent they relate to the financial statements not audited by us as stated in this paragraph is based solely on the audit reports of the other auditors. Our opinion is not qualified in respect of this matter.
11. The consolidated financial statements also include the unaudited financial statements of certain subsidiaries, whose financial statements reflect total assets (after eliminating intra-group transactions) of Rs. 124,919,756 as at December 31, 2013 and total revenues (after eliminating intra-group transactions) of Rs 55,873,214 and net cash outflows aggregating to Rs. 20,669,881 for the period then ended. These financial statements have been certified by the management. Our opinion is not qualified in respect of this matter.
For Walker, Chandiok & CoChartered AccountantsFirm Registration No.: 001076N
per Ashish GuptaPartner Membership No. 504662
Place: New DelhiDate: February 28, 2014
100
MOSER BAER INDIA LIMITEDConsolidated balance sheet as at December 31, 2013(All amounts in rupees unless otherwise stated)
Note As at As atDecember 31, 2013 March 31, 2013
EQUITY AND LIABILITIES
Shareholders’ funds
Share capital 5 1,983,061,040 1,683,061,040
Preference shares issued by subsidiary companies 6 8,255,338,571 8,255,338,571
Reserves and surplus 7 (26,894,985,959) (19,162,480,762)
(16,656,586,348) (9,224,081,151)
Share application money pending allotment 8 82,500,000 200,000,000
Non-current liabilities
Long-term borrowings 9 24,232,190,512 20,903,003,610
Other long-term liabilities 10 102,033,931 88,233,621
Long-term provisions 11 503,238,068 529,211,181
24,837,462,511 21,520,448,412
Current liabilities
Short-term borrowings 12 8,852,760,470 9,441,506,321
Trade payables 13 2,105,631,737 2,593,057,470
Other current liabilities 14 13,611,566,982 13,812,326,917
Short-term provisions 15 1,633,967,348 1,089,716,653
26,203,926,537 26,936,607,361
34,467,302,700 39,432,974,622
ASSETS
Non-current assets
Fixed assets
Tangible assets 16 18,779,060,218 21,812,916,614
Intangible assets 16 1,141,138,688 1,421,922,951
Capital work-in-progress 57,264,641 57,656,475
Intangible assets under development 40,617,142 228,274,907
Non-current investments 17 8,074,951 8,074,951
Long-term loans and advances 18 581,841,613 2,148,001,017
Other non-current assets 19 230,020,978 119,034,267
20,838,018,231 25,795,881,182
Current assets
Inventories 20 6,099,591,102 6,338,981,944
Trade receivables 21 2,504,069,701 2,513,516,049
Cash and bank balances 22 1,096,736,051 1,767,295,583
Short-term loans and advances 23 2,683,344,445 1,424,687,630
Other current assets 24 1,245,543,170 1,592,612,234
13,629,284,469 13,637,093,440
34,467,302,700 39,432,974,622
The accompanying notes from 1 to 55 form an integral part of the consolidated financial statements.This is the consolidated balance sheet referred to in our report of even date.
For Walker, Chandiok & Co For and on behalf of the board of directors ofChartered Accountants MOSER BAER INDIA LIMITED
per Ashish Gupta Deepak Puri Nita PuriPartner Chairman and Director
Managing Director
Place: New Delhi Yogesh Mathur Minni KatariyaDate: 28 February 2014 Group CFO Head Legal and
Company Secretary
101
MOSER BAER INDIA LIMITEDConsolidated statement of profit and loss for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
Notes Period endedDecember 31, 2013 March 31, 2013
REVENUE
Revenue from operations (gross) 25 11,841,824,904 17,352,429,890
Less: Excise duty (398,830,879) (557,037,410
Revenue from operations (net) 11,442,994,025 16,795,392,480
Other income 26 525,039,361 732,242,900
11,968,033,386 17,527,635,380
EXPENSES
Cost of materials consumed 27 6,103,943,691 8,416,492,708
Cost of film production - 18,733,458
Purchases of stock-in-trade 28 573,025,029 485,545,082
Changes in inventories of finished goods, stock-in-trade and work-in-progress 29 (158,580,525) 391,742,451
Employee benefit expenses 30 1,578,698,235 2,557,567,564
Finance costs 31 3,197,156,593 3,962,690,182
Depreciation, amortisation and impairment 32 3,829,553,999 4,086,833,223
Amortisation of foreign currency monetary items translation difference account - 515,366,123
Other expenses 33 3,847,414,685 5,894,618,815
18,971,211,707 26,329,589,606
Loss before exceptional items and tax (7,003,178,321) (8,801,954,226)
Exceptional items 34 47,656,587 (360,134,268)
Loss before tax (6,955,521,734) (9,162,088,494)
Tax expense:
- Current tax 122,424 231,514
Loss for the period/ year (6,955,644,158) (9,162,320,008)
Share in loss of associates - -
Net loss for the period/ year (6,955,644,158) (9,162,320,008)
Loss per equity share (equity share of par value of Rs. 10 each) - basic and diluted 44 (37.48) (54.44)
The accompanying notes from 1 to 55 form an integral part of the consolidated financial statements.
This is the consolidated statement of profit and loss referred to in our report of even date.
Year ended
For Walker, Chandiok & Co For and on behalf of the board of directors ofChartered Accountants MOSER BAER INDIA LIMITED
per Ashish Gupta Deepak Puri Nita PuriPartner Chairman and Director
Managing Director
Place: New Delhi Yogesh Mathur Minni KatariyaDate: 28 February 2014 Group CFO Head Legal and
Company Secretary
100
MOSER BAER INDIA LIMITEDConsolidated balance sheet as at December 31, 2013(All amounts in rupees unless otherwise stated)
Note As at As atDecember 31, 2013 March 31, 2013
EQUITY AND LIABILITIES
Shareholders’ funds
Share capital 5 1,983,061,040 1,683,061,040
Preference shares issued by subsidiary companies 6 8,255,338,571 8,255,338,571
Reserves and surplus 7 (26,894,985,959) (19,162,480,762)
(16,656,586,348) (9,224,081,151)
Share application money pending allotment 8 82,500,000 200,000,000
Non-current liabilities
Long-term borrowings 9 24,232,190,512 20,903,003,610
Other long-term liabilities 10 102,033,931 88,233,621
Long-term provisions 11 503,238,068 529,211,181
24,837,462,511 21,520,448,412
Current liabilities
Short-term borrowings 12 8,852,760,470 9,441,506,321
Trade payables 13 2,105,631,737 2,593,057,470
Other current liabilities 14 13,611,566,982 13,812,326,917
Short-term provisions 15 1,633,967,348 1,089,716,653
26,203,926,537 26,936,607,361
34,467,302,700 39,432,974,622
ASSETS
Non-current assets
Fixed assets
Tangible assets 16 18,779,060,218 21,812,916,614
Intangible assets 16 1,141,138,688 1,421,922,951
Capital work-in-progress 57,264,641 57,656,475
Intangible assets under development 40,617,142 228,274,907
Non-current investments 17 8,074,951 8,074,951
Long-term loans and advances 18 581,841,613 2,148,001,017
Other non-current assets 19 230,020,978 119,034,267
20,838,018,231 25,795,881,182
Current assets
Inventories 20 6,099,591,102 6,338,981,944
Trade receivables 21 2,504,069,701 2,513,516,049
Cash and bank balances 22 1,096,736,051 1,767,295,583
Short-term loans and advances 23 2,683,344,445 1,424,687,630
Other current assets 24 1,245,543,170 1,592,612,234
13,629,284,469 13,637,093,440
34,467,302,700 39,432,974,622
The accompanying notes from 1 to 55 form an integral part of the consolidated financial statements.This is the consolidated balance sheet referred to in our report of even date.
For Walker, Chandiok & Co For and on behalf of the board of directors ofChartered Accountants MOSER BAER INDIA LIMITED
per Ashish Gupta Deepak Puri Nita PuriPartner Chairman and Director
Managing Director
Place: New Delhi Yogesh Mathur Minni KatariyaDate: 28 February 2014 Group CFO Head Legal and
Company Secretary
101
MOSER BAER INDIA LIMITEDConsolidated statement of profit and loss for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
Notes Period endedDecember 31, 2013 March 31, 2013
REVENUE
Revenue from operations (gross) 25 11,841,824,904 17,352,429,890
Less: Excise duty (398,830,879) (557,037,410
Revenue from operations (net) 11,442,994,025 16,795,392,480
Other income 26 525,039,361 732,242,900
11,968,033,386 17,527,635,380
EXPENSES
Cost of materials consumed 27 6,103,943,691 8,416,492,708
Cost of film production - 18,733,458
Purchases of stock-in-trade 28 573,025,029 485,545,082
Changes in inventories of finished goods, stock-in-trade and work-in-progress 29 (158,580,525) 391,742,451
Employee benefit expenses 30 1,578,698,235 2,557,567,564
Finance costs 31 3,197,156,593 3,962,690,182
Depreciation, amortisation and impairment 32 3,829,553,999 4,086,833,223
Amortisation of foreign currency monetary items translation difference account - 515,366,123
Other expenses 33 3,847,414,685 5,894,618,815
18,971,211,707 26,329,589,606
Loss before exceptional items and tax (7,003,178,321) (8,801,954,226)
Exceptional items 34 47,656,587 (360,134,268)
Loss before tax (6,955,521,734) (9,162,088,494)
Tax expense:
- Current tax 122,424 231,514
Loss for the period/ year (6,955,644,158) (9,162,320,008)
Share in loss of associates - -
Net loss for the period/ year (6,955,644,158) (9,162,320,008)
Loss per equity share (equity share of par value of Rs. 10 each) - basic and diluted 44 (37.48) (54.44)
The accompanying notes from 1 to 55 form an integral part of the consolidated financial statements.
This is the consolidated statement of profit and loss referred to in our report of even date.
Year ended
For Walker, Chandiok & Co For and on behalf of the board of directors ofChartered Accountants MOSER BAER INDIA LIMITED
per Ashish Gupta Deepak Puri Nita PuriPartner Chairman and Director
Managing Director
Place: New Delhi Yogesh Mathur Minni KatariyaDate: 28 February 2014 Group CFO Head Legal and
Company Secretary
102
MOSER BAER INDIA LIMITEDConsolidated cash flow statement for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
December 31, 2013 March 31, 2013
Cash flow from operating activities:
Cash flow from operating activities:
Loss before tax (6,955,521,734) (9,162,088,494)
Adjustments for:
Depreciation, amortisation and impairment 2,421,458,799 4,602,199,346
Loss on impairment of assets 1,408,095,200 -
Interest expense 3,197,156,593 3,945,726,538
Interest income (66,087,185) (88,257,440)
Loss/ (profit) on sale of fixed assets (net) 1,128,935 (8,254,713)
Debts/advances written off 300,516,150 2,926,409
Provision for bad and doubtful debts 106,037,211 55,744,398
Provision for doubtful advances 214,297,868 63,104,015
Old liabilities and provisions no longer required written back (149,774,564) (112,565,157)
Stock written off - 40,288,285
Provision for slow moving stock 170,223,847 -
Provision for warranty 20,362,640 13,945,884
Provision for films under production 27,954,978 10,045,546
Unrealised foreign exchange loss/ (gain) 52,786,597 (287,286,488)
Dimuntion in value of investment - 593,327,997
Reversal of interest expense for previous year under
corporate debt restructuring scheme (331,510,604) (233,193,729)
Prior period income (net) (13,010,061) (92,836,198)
Operating profit/(loss) before working capital changes 404,114,670 (657,173,801)
Adjustments for changes in working capital:
Decrease in trade receivables 93,763,307 1,716,145,312
Decrease/ (increase) in loans and advances and other assets 878,156,455 (1,551,654,133)
Decrease in inventories 41,212,017 966,444,125
(Decrease)/ increase in trade payable and other liabilities (1,885,274,093) 543,552,400
Cash (used in)/ generated from operations (468,027,644) 1,017,313,903
Income tax (paid) (net of tax deducted at source) 45,407,765 160,743,375
Prior period income (net) 13,010,061 92,836,198
Net cash (used in)/ generated from operating activities A (409,609,818) 1,270,893,476
Cash flow from investing activities:
Purchase of fixed assets/ additions to capital work-in-progress (64,148,893) (167,155,525)
Proceeds from sale of fixed assets 10,336,213 15,079,696
Net movement from fixed bank deposits, unpaid dividend 169,480,840 289,748,280
Interest received 63,400,688 113,700,157
Net cash generated from investing activities B 179,068,848 251,372,608
Period ended Year ended
103
MOSER BAER INDIA LIMITEDConsolidated cash flow statement for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
Period ended Year endedDecember 31, 2013 March 31, 2013
Cash flow from financing activities:
Proceeds from share application money 82,500,000 200,000,000
Proceeds from issue of preference shares by subsidiary - 100,000,000
Proceeds from issue of equity shares to promoter 100,000,000 -
Net movement in long-term borrowings 3,114,173,335 9,001,406,077
Net movement in short-term borrowings (596,665,625) (6,855,358,274)
Finance cost paid (2,970,183,381) (3,551,697,337)
Dividend paid for earlier years (362,050) (377,008)
Net cash used in financing activities C (270,537,721) (1,106,026,542)
Net (decrease)/ increase in cash and cash equivalents (A+B+C) (501,078,691) 416,239,542
Cash and cash equivalents at the beginning of the period/ year 900,201,531 483,961,989
Cash and cash equivalents at the end of the period/ year 399,122,840 900,201,531
Components of cash and cash equivalents
Cash, cheques and drafts in hand 6,370,750 142,350,128
Remittances in transit 1,131,582 46,186,520
Balance with banks 311,417,228 624,327,824
Deposits with less than 3 months maturity 80,203,280 87,337,059
399,122,840 900,201,531
Notes from 1 to 55 form an integral part of the consolidated financial statements.
This is the consolidated cash flow statement referred to in our report of even date.
For Walker, Chandiok & Co For and on behalf of the board of directors ofChartered Accountants MOSER BAER INDIA LIMITED
per Ashish Gupta Deepak Puri Nita PuriPartner Chairman and Director
Managing Director
Place: New Delhi Yogesh Mathur Minni KatariyaDate: 28 February 2014 Group CFO Head Legal and
Company Secretary
102
MOSER BAER INDIA LIMITEDConsolidated cash flow statement for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
December 31, 2013 March 31, 2013
Cash flow from operating activities:
Cash flow from operating activities:
Loss before tax (6,955,521,734) (9,162,088,494)
Adjustments for:
Depreciation, amortisation and impairment 2,421,458,799 4,602,199,346
Loss on impairment of assets 1,408,095,200 -
Interest expense 3,197,156,593 3,945,726,538
Interest income (66,087,185) (88,257,440)
Loss/ (profit) on sale of fixed assets (net) 1,128,935 (8,254,713)
Debts/advances written off 300,516,150 2,926,409
Provision for bad and doubtful debts 106,037,211 55,744,398
Provision for doubtful advances 214,297,868 63,104,015
Old liabilities and provisions no longer required written back (149,774,564) (112,565,157)
Stock written off - 40,288,285
Provision for slow moving stock 170,223,847 -
Provision for warranty 20,362,640 13,945,884
Provision for films under production 27,954,978 10,045,546
Unrealised foreign exchange loss/ (gain) 52,786,597 (287,286,488)
Dimuntion in value of investment - 593,327,997
Reversal of interest expense for previous year under
corporate debt restructuring scheme (331,510,604) (233,193,729)
Prior period income (net) (13,010,061) (92,836,198)
Operating profit/(loss) before working capital changes 404,114,670 (657,173,801)
Adjustments for changes in working capital:
Decrease in trade receivables 93,763,307 1,716,145,312
Decrease/ (increase) in loans and advances and other assets 878,156,455 (1,551,654,133)
Decrease in inventories 41,212,017 966,444,125
(Decrease)/ increase in trade payable and other liabilities (1,885,274,093) 543,552,400
Cash (used in)/ generated from operations (468,027,644) 1,017,313,903
Income tax (paid) (net of tax deducted at source) 45,407,765 160,743,375
Prior period income (net) 13,010,061 92,836,198
Net cash (used in)/ generated from operating activities A (409,609,818) 1,270,893,476
Cash flow from investing activities:
Purchase of fixed assets/ additions to capital work-in-progress (64,148,893) (167,155,525)
Proceeds from sale of fixed assets 10,336,213 15,079,696
Net movement from fixed bank deposits, unpaid dividend 169,480,840 289,748,280
Interest received 63,400,688 113,700,157
Net cash generated from investing activities B 179,068,848 251,372,608
Period ended Year ended
103
MOSER BAER INDIA LIMITEDConsolidated cash flow statement for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
Period ended Year endedDecember 31, 2013 March 31, 2013
Cash flow from financing activities:
Proceeds from share application money 82,500,000 200,000,000
Proceeds from issue of preference shares by subsidiary - 100,000,000
Proceeds from issue of equity shares to promoter 100,000,000 -
Net movement in long-term borrowings 3,114,173,335 9,001,406,077
Net movement in short-term borrowings (596,665,625) (6,855,358,274)
Finance cost paid (2,970,183,381) (3,551,697,337)
Dividend paid for earlier years (362,050) (377,008)
Net cash used in financing activities C (270,537,721) (1,106,026,542)
Net (decrease)/ increase in cash and cash equivalents (A+B+C) (501,078,691) 416,239,542
Cash and cash equivalents at the beginning of the period/ year 900,201,531 483,961,989
Cash and cash equivalents at the end of the period/ year 399,122,840 900,201,531
Components of cash and cash equivalents
Cash, cheques and drafts in hand 6,370,750 142,350,128
Remittances in transit 1,131,582 46,186,520
Balance with banks 311,417,228 624,327,824
Deposits with less than 3 months maturity 80,203,280 87,337,059
399,122,840 900,201,531
Notes from 1 to 55 form an integral part of the consolidated financial statements.
This is the consolidated cash flow statement referred to in our report of even date.
For Walker, Chandiok & Co For and on behalf of the board of directors ofChartered Accountants MOSER BAER INDIA LIMITED
per Ashish Gupta Deepak Puri Nita PuriPartner Chairman and Director
Managing Director
Place: New Delhi Yogesh Mathur Minni KatariyaDate: 28 February 2014 Group CFO Head Legal and
Company Secretary
104
1 Basis of preparation of consolidated financial statements
Consolidated Financial Statements (CFS) of Moser Baer India Limited (“the Company or Parent”), its subsidiaries and associates (referred to as “Group”) are prepared under historical cost convention on an accrual basis, in accordance with the generally accepted accounting principles in India and to comply with the Accounting Standards prescribed in the Companies (Accounting Standards) Rules, 2006 issued by the Central Government in exercise of the power conferred under sub-section (I) (a) of section 642 and the relevant provisions of the Companies Act, 1956 (the ‘Act’) read with the General Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013.
2 Consolidation procedure
(a) The CFS are prepared in accordance with Accounting Standard (AS-21) “Consolidated Financial Statements” notified under The Companies Act, 1956 (“the Act”). The financial statements of the Parent and its subsidiaries are combined on a line by line basis by adding together sums of like nature, comprising assets, liabilities, income and expenses and after eliminating intra-group balances/ transactions.
(b) The Financial Statements of certain foreign subsidiaries and associates, are prepared by them on the basis of generally accepted accounting principles, local laws and regulations as prevalent in their respective countries and such financial statements are considered for consolidation.
(c) Subsidiaries are consolidated on the date on which effective control is transferred to the group and are no longer consolidated from the date of disposal.
(d) The financial statements of the subsidiaries have been drawn for the period from April 1, 2013 or date of incorporation/ acquisition, whichever is later, to December 31, 2013.
(e) The Parent’s cost of its investment in its subsidiaries has been eliminated against the Parent’s portion of equity of each subsidiary as on the date of investment in that subsidiary. The excess is recognised as ‘Goodwill’. Negative goodwill is recognised as ‘Capital Reserve’.
(f) For the purpose of compilation of the CFS the foreign currency assets, liabilities, income and expenditure are translated as per Accounting Standard (AS-11) on “Accounting for the Effects of Changes in Foreign Exchange Rates”, notified under the Act. Exchange differences arising are recognised in the Consolidated Profit and Loss account or in the Foreign Currency Translation Reserve classified under Reserves and Surplus as applicable, under the above mentioned Accounting Standard.
(g) Investment in associates are accounted for under the Equity Method as per AS-23 “Accounting for Investments in Associates in Consolidated Financial Statements” notified under the Act based on the financial statements of the associates drawn up to the period ended mentioned in note 35 (b). The Group discontinues recognising the share of future losses when the share of losses in associate equals or exceeds the carrying amount of investment.
3 Use of estimates
The preparation of consolidated financial statements in conformity with the principles generally accepted in India requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent liabilities on the date of financial statements and the reported amounts of revenues and expenses during the reporting period. Example of such estimates include provisions for doubtful debts/ advances, employee retirement benefit plans, warranty, provision for income taxes, useful life of fixed assets, diminution in value of investments and fixed assets, other probable obligations and inventory write down. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in the current and future periods.
4 Significant accounting policies
(a) Revenue Recognition
(i) Revenue from sale of goods
Revenue from sale of goods is recognised on transfer of significant risks and rewards incident to ownership and when no significant uncertainty exists regarding realisation of the consideration. Sales are recorded net of sales returns, rebates, trade discounts and price differences and are inclusive of excise duty.
Theatrical revenues from films are recognised as and when the films are exhibited and when no significant uncertainty exists regarding realisation of the sale consideration.
Revenue from sale of other rights such as satellite rights, music rights, overseas assignment rights etc. is recognised as and when the rights for exploitation are transferred to the customer and no significant uncertainty exists regarding realisation of the consideration.
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
105
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
(ii) Revenue from sale of services
Service income comprises of revenue from assets given on lease and other services rendered.
(a) Revenue from construction contracts
(a) Revenue in respect of construction contracts, which extend beyond an accounting period and where the outcome can be reliably estimated, is recognised on ‘Percentage of Completion’ method by calculating the portion that costs incurred upto the reporting date bear to the latest estimated total costs of each contract. In other cases, revenue is recognised only to the extent of contract costs incurred of which recovery is probable.
Provision for foreseeable losses on contracts is made, based on the estimates of the management.
(b) Revenue from assets given on lease is recorded in accordance with the accounting policy given below on ‘Leases’ .
(c) Income from other services is recognised as and when services are rendered.
(d) Export benefit entitlements under the Focused Product Scheme are recognised in the statement of profit and loss when the right to receive credit as per the terms of the scheme is established in respect of the exports made.
(iii) Other income
Interest is accounted for based on a time proportion basis taking into account the amount invested and the rate of interest.
Dividend is recognised as and when the right of the Company to receive payment is established as at the balance sheet date.
(b) Fixed assets
(i) Tangible assets
Tangible fixed assets are stated at cost less accumulated depreciation. Cost includes all expenses, direct and indirect, specifically attributable to its acquisition and bringing it to its working condition for its intended use.
Incidental expenditure pending allocation and attributable to the acquisition of fixed assets is allocated/ capitalised with the related cost of fixed assets.
Capital expenditure incurred on rented properties is recorded as leasehold improvements under fixed assets to the extent such expenditure is of permanent nature. Expenditure on assets which are of removable nature are recorded in the respective category of assets.
(ii) Intangible assets
Intangible assets are stated at cost less accumulated amortisation. The cost incurred to acquire technical know how with “right to use and exploit” are capitalised where the right allows the Company to obtain a future economic benefit from use of such know how.
The cost incurred to acquire “right to use and exploit” home video titles, are capitalised as copyrights/marketing and distribution rights where the right allows the Company to obtain a future economic benefit from such titles.
Further, expenditure incurred on knowhow yielding future economic benefits is recognised as internally generated intangible asset at cost less accumulated amortisation and impairment losses, if any.
Impairment, if any, in the carrying value of fixed assets is assessed at the end of each financial year in accordance with the accounting policy given below on “impairment of assets”.
Fixed assets held for sale are recorded at lower of book value or estimated net realisable value.
(c) Depreciation and amortisation
(i) Tangible assets
Depreciation on tangible fixed assets is provided under straight-line method at rates specified in Schedule XIV to the Companies Act, 1956, being representative of the useful lives of tangible fixed assets.
Leasehold improvements are being amortised over the primary lease period or useful lives of related fixed assets whichever is shorter.
Depreciation on additions is being provided on pro-rata basis from the date of such additions. Similarly, depreciation on assets sold/disposed off during the period is being provided up to the date on which such assets are sold/disposed off. All assets costing Rs. 5,000 or less are fully depreciated in the year of purchase.
In case the historical cost of an asset undergoes a change due to an increase or decrease in related long-term liability on account of foreign exchange fluctuations on such long-term liabilities, the depreciation on the revised unamortised depreciable amount is provided prospectively over the residual useful life of the asset.
104
1 Basis of preparation of consolidated financial statements
Consolidated Financial Statements (CFS) of Moser Baer India Limited (“the Company or Parent”), its subsidiaries and associates (referred to as “Group”) are prepared under historical cost convention on an accrual basis, in accordance with the generally accepted accounting principles in India and to comply with the Accounting Standards prescribed in the Companies (Accounting Standards) Rules, 2006 issued by the Central Government in exercise of the power conferred under sub-section (I) (a) of section 642 and the relevant provisions of the Companies Act, 1956 (the ‘Act’) read with the General Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013.
2 Consolidation procedure
(a) The CFS are prepared in accordance with Accounting Standard (AS-21) “Consolidated Financial Statements” notified under The Companies Act, 1956 (“the Act”). The financial statements of the Parent and its subsidiaries are combined on a line by line basis by adding together sums of like nature, comprising assets, liabilities, income and expenses and after eliminating intra-group balances/ transactions.
(b) The Financial Statements of certain foreign subsidiaries and associates, are prepared by them on the basis of generally accepted accounting principles, local laws and regulations as prevalent in their respective countries and such financial statements are considered for consolidation.
(c) Subsidiaries are consolidated on the date on which effective control is transferred to the group and are no longer consolidated from the date of disposal.
(d) The financial statements of the subsidiaries have been drawn for the period from April 1, 2013 or date of incorporation/ acquisition, whichever is later, to December 31, 2013.
(e) The Parent’s cost of its investment in its subsidiaries has been eliminated against the Parent’s portion of equity of each subsidiary as on the date of investment in that subsidiary. The excess is recognised as ‘Goodwill’. Negative goodwill is recognised as ‘Capital Reserve’.
(f) For the purpose of compilation of the CFS the foreign currency assets, liabilities, income and expenditure are translated as per Accounting Standard (AS-11) on “Accounting for the Effects of Changes in Foreign Exchange Rates”, notified under the Act. Exchange differences arising are recognised in the Consolidated Profit and Loss account or in the Foreign Currency Translation Reserve classified under Reserves and Surplus as applicable, under the above mentioned Accounting Standard.
(g) Investment in associates are accounted for under the Equity Method as per AS-23 “Accounting for Investments in Associates in Consolidated Financial Statements” notified under the Act based on the financial statements of the associates drawn up to the period ended mentioned in note 35 (b). The Group discontinues recognising the share of future losses when the share of losses in associate equals or exceeds the carrying amount of investment.
3 Use of estimates
The preparation of consolidated financial statements in conformity with the principles generally accepted in India requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent liabilities on the date of financial statements and the reported amounts of revenues and expenses during the reporting period. Example of such estimates include provisions for doubtful debts/ advances, employee retirement benefit plans, warranty, provision for income taxes, useful life of fixed assets, diminution in value of investments and fixed assets, other probable obligations and inventory write down. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in the current and future periods.
4 Significant accounting policies
(a) Revenue Recognition
(i) Revenue from sale of goods
Revenue from sale of goods is recognised on transfer of significant risks and rewards incident to ownership and when no significant uncertainty exists regarding realisation of the consideration. Sales are recorded net of sales returns, rebates, trade discounts and price differences and are inclusive of excise duty.
Theatrical revenues from films are recognised as and when the films are exhibited and when no significant uncertainty exists regarding realisation of the sale consideration.
Revenue from sale of other rights such as satellite rights, music rights, overseas assignment rights etc. is recognised as and when the rights for exploitation are transferred to the customer and no significant uncertainty exists regarding realisation of the consideration.
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
105
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
(ii) Revenue from sale of services
Service income comprises of revenue from assets given on lease and other services rendered.
(a) Revenue from construction contracts
(a) Revenue in respect of construction contracts, which extend beyond an accounting period and where the outcome can be reliably estimated, is recognised on ‘Percentage of Completion’ method by calculating the portion that costs incurred upto the reporting date bear to the latest estimated total costs of each contract. In other cases, revenue is recognised only to the extent of contract costs incurred of which recovery is probable.
Provision for foreseeable losses on contracts is made, based on the estimates of the management.
(b) Revenue from assets given on lease is recorded in accordance with the accounting policy given below on ‘Leases’ .
(c) Income from other services is recognised as and when services are rendered.
(d) Export benefit entitlements under the Focused Product Scheme are recognised in the statement of profit and loss when the right to receive credit as per the terms of the scheme is established in respect of the exports made.
(iii) Other income
Interest is accounted for based on a time proportion basis taking into account the amount invested and the rate of interest.
Dividend is recognised as and when the right of the Company to receive payment is established as at the balance sheet date.
(b) Fixed assets
(i) Tangible assets
Tangible fixed assets are stated at cost less accumulated depreciation. Cost includes all expenses, direct and indirect, specifically attributable to its acquisition and bringing it to its working condition for its intended use.
Incidental expenditure pending allocation and attributable to the acquisition of fixed assets is allocated/ capitalised with the related cost of fixed assets.
Capital expenditure incurred on rented properties is recorded as leasehold improvements under fixed assets to the extent such expenditure is of permanent nature. Expenditure on assets which are of removable nature are recorded in the respective category of assets.
(ii) Intangible assets
Intangible assets are stated at cost less accumulated amortisation. The cost incurred to acquire technical know how with “right to use and exploit” are capitalised where the right allows the Company to obtain a future economic benefit from use of such know how.
The cost incurred to acquire “right to use and exploit” home video titles, are capitalised as copyrights/marketing and distribution rights where the right allows the Company to obtain a future economic benefit from such titles.
Further, expenditure incurred on knowhow yielding future economic benefits is recognised as internally generated intangible asset at cost less accumulated amortisation and impairment losses, if any.
Impairment, if any, in the carrying value of fixed assets is assessed at the end of each financial year in accordance with the accounting policy given below on “impairment of assets”.
Fixed assets held for sale are recorded at lower of book value or estimated net realisable value.
(c) Depreciation and amortisation
(i) Tangible assets
Depreciation on tangible fixed assets is provided under straight-line method at rates specified in Schedule XIV to the Companies Act, 1956, being representative of the useful lives of tangible fixed assets.
Leasehold improvements are being amortised over the primary lease period or useful lives of related fixed assets whichever is shorter.
Depreciation on additions is being provided on pro-rata basis from the date of such additions. Similarly, depreciation on assets sold/disposed off during the period is being provided up to the date on which such assets are sold/disposed off. All assets costing Rs. 5,000 or less are fully depreciated in the year of purchase.
In case the historical cost of an asset undergoes a change due to an increase or decrease in related long-term liability on account of foreign exchange fluctuations on such long-term liabilities, the depreciation on the revised unamortised depreciable amount is provided prospectively over the residual useful life of the asset.
106
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
(ii) Intangible assets
Intangible assets are being amortised on a straight line basis over the useful life, not exceeding 10 years, as estimated by management to be the economic life of the asset over which economic benefits are expected to flow.
Copyrights/ marketing and distribution rights are amortised from the date they are available for use, at the higher of the amount calculated on a straight line basis over the period for which the intangible asset is available for exploitation to the Company, not exceeding 10 years and the number of units sold during the period basis.
(d) Investments
Long-term investments are stated at cost of acquisition inclusive of expenditure incidental to acquisition. A provision for diminution is made to recognise a decline, other than temporary in the value of long-term investments.
Current investments are stated at lower of cost and fair value determined on an individual basis.
(e) Inventory valuation
(i) Inventories are valued as under:
Finished goods, work-in-progress, traded goods and film rights At lower of cost and net
Raw materials, packing materials and stores and spares realisable value
(ii) Cost of inventories is ascertained on the following basis:
Cost of raw material, goods held for resale, packing materials and stores and spares is determined on the basis of weighted average method.
Cost of work-in-process and finished goods is determined by considering direct material costs, labour costs and appropriate portion of overheads.
Liability for excise duty in respect of goods manufactured by the Group, other than for exports, is accounted upon completion of manufacture.
(iii) Traded goods:
Traded goods held for resale are stated at lower of cost and net realisable value.Cost of traded goods is determined on weighted average cost basis.
(iv) Films under production:
Inventories of under production films and films completed and not released are valued at cost.
The cost of released films is amortised using the individual film forecast method. The said amortisation pertaining to theatrical rights, satellite rights, music rights, home video rights and others is based on management estimates of revenues from each of these rights. The inventory, thus, comprises of unamortised cost of such movie rights. These estimates are reviewed periodically and losses, if any, based on revised estimates are provided in full.
At the end of each accounting period, such unamortised cost is compared with net expected revenue. In case of net expected revenue being lower than actual unamortised costs, inventories are written down to net expected revenue.
(v) Cost of rights:
The purchase cost of the rights acquired in released films is apportioned between satellite rights and other rights (excluding home video rights) based on management’s estimates of revenue potential.
Net realisable value is the estimated selling price in the ordinary course of business, less estimated cost to affect the sale.
(vi) Provision for obsolescence and slow moving inventory is made below cost based on management’s best estimates of net realisable value.
(f) Government grants
Grants in the nature of contribution towards capital cost of setting up projects are treated as capital reserve and grants in respect of specific fixed assets are adjusted from the cost of the related fixed assets.
(g) Borrowing costs
Borrowing costs directly attributable to acquisition, construction or erection of fixed assets, which necessarily take a substantial period of time to be ready for their intended use, are capitalised. Capitalisation of borrowing costs ceases when substantially all the activities necessary to prepare the qualifying assets for their intended uses are complete. Other borrowing costs are recognised as an expense in the statement of profit and loss in the period in which they are incurred.
}
107
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
(h) Employee benefits
(i) Provident fund and Employees’ state insurance
The entities within the Group makes contribution to statutory provident fund which is recognised by the income tax authorities in accordance with Employees Provident Fund and Miscellaneous Provisions Act, 1952 which is a defined contribution plan, as applicable. These funds are administered through Regional Provident Fund Commissioner and contribution paid or payable is recognised as an expense in the period in which the services are rendered by employees of the contributing entities. These entities have no legal or constructive obligation to pay further contribution after payment of the fixed contribution.
Contribution to state plans namely Employee’s State Insurance Fund and Employee’s Pension Scheme 1995, as applicable is recognised as an expense in the period in which the services are rendered by employees of the contributing entities.
(ii) Gratuity
Gratuity is a post employment benefit and is in the nature of defined benefit plan. The liability recognised in the balance sheet in respect of gratuity is the present value of the defined benefit obligation as at the balance sheet date less the fair value of plan assets, together with adjustments for unrecognised actuarial gains or losses. Gratuity fund is administered through Life Insurance Corporation of India. The defined benefit obligation is calculated at the balance sheet date on the basis of actuarial valuation by an independent actuary using projected unit credit method. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recorded in the statement of profit and loss in the period in which such gains or losses arise.
(iii) Compensated absences
The Group also provides benefit of compensated absences to its employees which are in the nature of long-term benefit plan. The compensated absences comprises of vesting as well as non vesting benefit. Liability in respect of compensated absences becoming due and expected to be availed within one year from the balance sheet date is recognised on the basis of undiscounted value of estimated amount required to be paid or estimated value of benefits expected to be availed by the employees. Liability in respect of compensated absences becoming due and expected to be availed more than one year after the balance sheet date is estimated on the basis of an actuarial valuation performed by an independent actuary using the projected unit credit method as on the reporting date.Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recorded in the statement of profit and loss in the period in which such gains or losses arise.
(iv) Other benefits
Liability for long-term employee retention schemes is determined on the basis of actuarial valuation at the period end. Actuarial gains and losses comprise experience adjustments and the effects of changes in actuarial assumptions and are recognised immediately in the statement of profit and loss as income or expense.
Expense in respect of other short-term benefits is recognised on the basis of amount paid or payable for the period during which services are rendered by the employees.
(i) Foreign currency transactions
(i) Initial recognition
Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount, the exchange rate between the reporting currency and the foreign currency at the date of the transaction.
(ii) Subsequent recognition
Foreign currency monetary assets and liabilities are reported using the closing rate as at the reporting date.
Non-monetary items, which are carried in terms of historical cost denominated in a foreign currency, are reported using the exchange rate at the date of the transaction.
(iii) Exchange differences
Exchange differences arising on the settlement of monetary items at rates different from those at which they were initially recorded during the period or reported in previous financial statements, are recognised as income or expense in the period in which they arise, except for exchange differences arising on foreign currency monetary items.
Gain/ loss on account of exchange fluctuations arising on long-term foreign currency liabilities in so far as it relates to the acquisition of depreciable capital assets is added to the cost of such assets and in other cases, by transfer to “Foreign Currency Monetary Item Translation Difference Account”, to be amortised over the balance period of such long-term foreign currency liabilities or March 31, 2020, whichever is earlier.
(iv) Foreign operations
In respect of integral foreign branches, all revenues, expenses, monetary assets/ liabilities and fixed assets are
106
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
(ii) Intangible assets
Intangible assets are being amortised on a straight line basis over the useful life, not exceeding 10 years, as estimated by management to be the economic life of the asset over which economic benefits are expected to flow.
Copyrights/ marketing and distribution rights are amortised from the date they are available for use, at the higher of the amount calculated on a straight line basis over the period for which the intangible asset is available for exploitation to the Company, not exceeding 10 years and the number of units sold during the period basis.
(d) Investments
Long-term investments are stated at cost of acquisition inclusive of expenditure incidental to acquisition. A provision for diminution is made to recognise a decline, other than temporary in the value of long-term investments.
Current investments are stated at lower of cost and fair value determined on an individual basis.
(e) Inventory valuation
(i) Inventories are valued as under:
Finished goods, work-in-progress, traded goods and film rights At lower of cost and net
Raw materials, packing materials and stores and spares realisable value
(ii) Cost of inventories is ascertained on the following basis:
Cost of raw material, goods held for resale, packing materials and stores and spares is determined on the basis of weighted average method.
Cost of work-in-process and finished goods is determined by considering direct material costs, labour costs and appropriate portion of overheads.
Liability for excise duty in respect of goods manufactured by the Group, other than for exports, is accounted upon completion of manufacture.
(iii) Traded goods:
Traded goods held for resale are stated at lower of cost and net realisable value.Cost of traded goods is determined on weighted average cost basis.
(iv) Films under production:
Inventories of under production films and films completed and not released are valued at cost.
The cost of released films is amortised using the individual film forecast method. The said amortisation pertaining to theatrical rights, satellite rights, music rights, home video rights and others is based on management estimates of revenues from each of these rights. The inventory, thus, comprises of unamortised cost of such movie rights. These estimates are reviewed periodically and losses, if any, based on revised estimates are provided in full.
At the end of each accounting period, such unamortised cost is compared with net expected revenue. In case of net expected revenue being lower than actual unamortised costs, inventories are written down to net expected revenue.
(v) Cost of rights:
The purchase cost of the rights acquired in released films is apportioned between satellite rights and other rights (excluding home video rights) based on management’s estimates of revenue potential.
Net realisable value is the estimated selling price in the ordinary course of business, less estimated cost to affect the sale.
(vi) Provision for obsolescence and slow moving inventory is made below cost based on management’s best estimates of net realisable value.
(f) Government grants
Grants in the nature of contribution towards capital cost of setting up projects are treated as capital reserve and grants in respect of specific fixed assets are adjusted from the cost of the related fixed assets.
(g) Borrowing costs
Borrowing costs directly attributable to acquisition, construction or erection of fixed assets, which necessarily take a substantial period of time to be ready for their intended use, are capitalised. Capitalisation of borrowing costs ceases when substantially all the activities necessary to prepare the qualifying assets for their intended uses are complete. Other borrowing costs are recognised as an expense in the statement of profit and loss in the period in which they are incurred.
}
107
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
(h) Employee benefits
(i) Provident fund and Employees’ state insurance
The entities within the Group makes contribution to statutory provident fund which is recognised by the income tax authorities in accordance with Employees Provident Fund and Miscellaneous Provisions Act, 1952 which is a defined contribution plan, as applicable. These funds are administered through Regional Provident Fund Commissioner and contribution paid or payable is recognised as an expense in the period in which the services are rendered by employees of the contributing entities. These entities have no legal or constructive obligation to pay further contribution after payment of the fixed contribution.
Contribution to state plans namely Employee’s State Insurance Fund and Employee’s Pension Scheme 1995, as applicable is recognised as an expense in the period in which the services are rendered by employees of the contributing entities.
(ii) Gratuity
Gratuity is a post employment benefit and is in the nature of defined benefit plan. The liability recognised in the balance sheet in respect of gratuity is the present value of the defined benefit obligation as at the balance sheet date less the fair value of plan assets, together with adjustments for unrecognised actuarial gains or losses. Gratuity fund is administered through Life Insurance Corporation of India. The defined benefit obligation is calculated at the balance sheet date on the basis of actuarial valuation by an independent actuary using projected unit credit method. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recorded in the statement of profit and loss in the period in which such gains or losses arise.
(iii) Compensated absences
The Group also provides benefit of compensated absences to its employees which are in the nature of long-term benefit plan. The compensated absences comprises of vesting as well as non vesting benefit. Liability in respect of compensated absences becoming due and expected to be availed within one year from the balance sheet date is recognised on the basis of undiscounted value of estimated amount required to be paid or estimated value of benefits expected to be availed by the employees. Liability in respect of compensated absences becoming due and expected to be availed more than one year after the balance sheet date is estimated on the basis of an actuarial valuation performed by an independent actuary using the projected unit credit method as on the reporting date.Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recorded in the statement of profit and loss in the period in which such gains or losses arise.
(iv) Other benefits
Liability for long-term employee retention schemes is determined on the basis of actuarial valuation at the period end. Actuarial gains and losses comprise experience adjustments and the effects of changes in actuarial assumptions and are recognised immediately in the statement of profit and loss as income or expense.
Expense in respect of other short-term benefits is recognised on the basis of amount paid or payable for the period during which services are rendered by the employees.
(i) Foreign currency transactions
(i) Initial recognition
Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount, the exchange rate between the reporting currency and the foreign currency at the date of the transaction.
(ii) Subsequent recognition
Foreign currency monetary assets and liabilities are reported using the closing rate as at the reporting date.
Non-monetary items, which are carried in terms of historical cost denominated in a foreign currency, are reported using the exchange rate at the date of the transaction.
(iii) Exchange differences
Exchange differences arising on the settlement of monetary items at rates different from those at which they were initially recorded during the period or reported in previous financial statements, are recognised as income or expense in the period in which they arise, except for exchange differences arising on foreign currency monetary items.
Gain/ loss on account of exchange fluctuations arising on long-term foreign currency liabilities in so far as it relates to the acquisition of depreciable capital assets is added to the cost of such assets and in other cases, by transfer to “Foreign Currency Monetary Item Translation Difference Account”, to be amortised over the balance period of such long-term foreign currency liabilities or March 31, 2020, whichever is earlier.
(iv) Foreign operations
In respect of integral foreign branches, all revenues, expenses, monetary assets/ liabilities and fixed assets are
108
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
accounted at the exchange rate prevailing on the date of the transaction. Monetary assets and liabilities are restated at the period end rates and resultant gains or losses are recognised in the statement of profit and loss and non-monetary items are carried at historical rates. Exchange differences arising in case of integral foreign operations are recognised in the statement of profit and loss and exchange differences arising in case of non integral foreign operations are recognised in the foreign currency translation reserve classified reserves and surplus.
(j) Taxation
(i) Current tax:
Provision is made for current income tax liability based on the applicable provisions of the Indian Income Tax Act, 1961 for the income chargeable under the aforementioned Income Tax Act and the relevant income tax laws of other countries in which the branch/ other entities of the Group are incorporated.
(ii) Deferred tax:
Deferred income taxes reflects the impact of current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. In respect of carry forward losses and unabsorbed depreciation, deferred tax assets are recognised only to the extent there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such losses can be set off.
Further, deferred tax asset appearing in books is reviewed at each reporting date and is written down to the extent it is not certain that the Company will pay taxes on future incomes against which such deferred tax asset may be adjusted.
(k) Leases
(i) Finance lease
Assets acquired under finance leases are recognised as an asset and a liability at the lower of the fair value of the leased assets at inception of the lease and the present value of minimum lease payments. Lease payments are apportioned between the finance charge and the reduction of the outstanding liability. The finance charge is allocated to periods during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability and charged in the statement of profit and loss.
(ii) Operating lease where group is lessee
Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased assets, are classified as ‘Operating Leases’. Lease rentals in respect of assets taken under operating leases are charged to the statement of profit and loss on straight line basis over the term of lease.
(iii) Operating lease where group is lessor
Lease rentals in respect of assets given under operating leases are credited to the statement of profit and loss on straight line basis over the term of lease.
(l) Stock option plans
Stock options granted to the employees and to the non-executive Directors who accepted the grant under the Company’s Stock Option Plan are accounted in accordance with Securities and Exchange Board of India (Employees Stock Option Scheme and Employees Stock Purchase Scheme) Guidelines, 1999. The Group follows the intrinsic value method and accordingly, the excess, if any, of the market price of the underlying equity shares as of the date of the grant of the option over the exercise price of the option, is recognised as employee compensation cost and amortised on straight line basis over the vesting period.
(m) Impairment of assets
At each balance sheet date, the Group assesses whether there is any indication that an asset may be impaired. If such indication exists, the Group estimates the recoverable amount and where carrying amount of the asset exceeds such recoverable amount, an impairment loss is recognised in the statement of profit and loss to the extent the carrying amount exceeds recoverable amount. Where there is any indication that an impairment loss recognised for an asset in prior accounting periods may no longer exist or may have decreased, the Group books a reversal of the impairment loss not exceeding the carrying amount that would have been determined (net of amortisation or depreciation) had no impairment loss been recognised for the asset in prior accounting periods.
(n) Warranty claims
The solar subsidiaries in the business of manufacturing of crystalline silicon solar photovoltaic modules provides up to
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MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
5 year limited warranty that the modules are free from defects in materials and workmanship, a 12 year limited warranty of 90 percent power output and a 25 year limited warranty of 80 percent of power output of its modules.
The subsidiaries accrue warranty costs, at the time when revenue is recognised.
Actual warranty costs are accumulated and charged against the accrued warranty liability. To the extent that actual warranty costs differ from the estimates, the Group will prospectively revise its accrual rate.
(o) Segment reporting
The accounting policies adopted for segment reporting are in line with the accounting policies adopted in consolidated financial statements with the following additional policies for segment reporting:
Inter segment revenue have been accounted for based on the transaction price agreed between segments with reference to cost, market prices and business risks, with an overall optimisation objective for the Group.
Revenue and expenses have been identified to segments on the basis of their relationship to the operating activities of the segment. Revenue and expenses, which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis, have been included under unallocated expenses/ revenue.
(p) Provisions and contingent liabilities
The Group creates a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation.
A disclosure is made for a contingent liability when there is a:
- possible obligation, the existence of which will be confirmed by the occurrence/non-occurrence of one or more uncertain events, not fully with in the control of the Company;
- present obligation, where it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation;
Where there is a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.
(q) Earnings per share
Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares, except where results would be anti-dilutive.
(r) Research and development costs
Revenue expenditure on research is expensed off under the respective heads of account in the period in which it is incurred. Expenditure on development activities, whereby research findings are applied to a plan or design for the production of new or substantially improved products and processes, is capitalised, if the cost can be reliably measured, the product or process is technically and commercially feasible and the relevant entity within the group has sufficient resources to complete the development and to use and sell the asset. The expenditure capitalised includes the cost of materials, direct labour and an appropriate proportion of overheads that are directly attributable to preparing the asset for its intended use. Other development expenditure is recognised in the statement of profit and loss as an expense as incurred.
Capitalised development expenditure is stated at cost less accumulated amortisation and impairment losses.
(s) Derivative instruments
The Group uses foreign exchange forward contracts to hedge its exposure towards highly probable and forecasted transactions. These foreign exchange forward contracts are not used for trading or speculation purposes.
(i) Forward contracts where an underlying asset or liability exists
In such case, the difference between the forward rate and the exchange rate at the inception of the contract is recognised as income or expense over the life of the contract.
(ii) Forward contracts taken for highly probable/ forecast transactions
Such forward exchange contracts are marked to market at the balance sheet date if such mark to market results in exchange loss such exchange loss is recognised in the statement of profit and loss immediately. Any gain is ignored and not recognised in the financial statements in accordance with the principles of prudence enunciated in Accounting Standard 1 - ‘Disclosure of Accounting Policies’ notified under the Act.
Profit or loss arising on cancellation or renewal of a forward contract is recognised as income or expense in the period in which such cancellation or renewal is made.
108
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
accounted at the exchange rate prevailing on the date of the transaction. Monetary assets and liabilities are restated at the period end rates and resultant gains or losses are recognised in the statement of profit and loss and non-monetary items are carried at historical rates. Exchange differences arising in case of integral foreign operations are recognised in the statement of profit and loss and exchange differences arising in case of non integral foreign operations are recognised in the foreign currency translation reserve classified reserves and surplus.
(j) Taxation
(i) Current tax:
Provision is made for current income tax liability based on the applicable provisions of the Indian Income Tax Act, 1961 for the income chargeable under the aforementioned Income Tax Act and the relevant income tax laws of other countries in which the branch/ other entities of the Group are incorporated.
(ii) Deferred tax:
Deferred income taxes reflects the impact of current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. In respect of carry forward losses and unabsorbed depreciation, deferred tax assets are recognised only to the extent there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such losses can be set off.
Further, deferred tax asset appearing in books is reviewed at each reporting date and is written down to the extent it is not certain that the Company will pay taxes on future incomes against which such deferred tax asset may be adjusted.
(k) Leases
(i) Finance lease
Assets acquired under finance leases are recognised as an asset and a liability at the lower of the fair value of the leased assets at inception of the lease and the present value of minimum lease payments. Lease payments are apportioned between the finance charge and the reduction of the outstanding liability. The finance charge is allocated to periods during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability and charged in the statement of profit and loss.
(ii) Operating lease where group is lessee
Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased assets, are classified as ‘Operating Leases’. Lease rentals in respect of assets taken under operating leases are charged to the statement of profit and loss on straight line basis over the term of lease.
(iii) Operating lease where group is lessor
Lease rentals in respect of assets given under operating leases are credited to the statement of profit and loss on straight line basis over the term of lease.
(l) Stock option plans
Stock options granted to the employees and to the non-executive Directors who accepted the grant under the Company’s Stock Option Plan are accounted in accordance with Securities and Exchange Board of India (Employees Stock Option Scheme and Employees Stock Purchase Scheme) Guidelines, 1999. The Group follows the intrinsic value method and accordingly, the excess, if any, of the market price of the underlying equity shares as of the date of the grant of the option over the exercise price of the option, is recognised as employee compensation cost and amortised on straight line basis over the vesting period.
(m) Impairment of assets
At each balance sheet date, the Group assesses whether there is any indication that an asset may be impaired. If such indication exists, the Group estimates the recoverable amount and where carrying amount of the asset exceeds such recoverable amount, an impairment loss is recognised in the statement of profit and loss to the extent the carrying amount exceeds recoverable amount. Where there is any indication that an impairment loss recognised for an asset in prior accounting periods may no longer exist or may have decreased, the Group books a reversal of the impairment loss not exceeding the carrying amount that would have been determined (net of amortisation or depreciation) had no impairment loss been recognised for the asset in prior accounting periods.
(n) Warranty claims
The solar subsidiaries in the business of manufacturing of crystalline silicon solar photovoltaic modules provides up to
109
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
5 year limited warranty that the modules are free from defects in materials and workmanship, a 12 year limited warranty of 90 percent power output and a 25 year limited warranty of 80 percent of power output of its modules.
The subsidiaries accrue warranty costs, at the time when revenue is recognised.
Actual warranty costs are accumulated and charged against the accrued warranty liability. To the extent that actual warranty costs differ from the estimates, the Group will prospectively revise its accrual rate.
(o) Segment reporting
The accounting policies adopted for segment reporting are in line with the accounting policies adopted in consolidated financial statements with the following additional policies for segment reporting:
Inter segment revenue have been accounted for based on the transaction price agreed between segments with reference to cost, market prices and business risks, with an overall optimisation objective for the Group.
Revenue and expenses have been identified to segments on the basis of their relationship to the operating activities of the segment. Revenue and expenses, which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis, have been included under unallocated expenses/ revenue.
(p) Provisions and contingent liabilities
The Group creates a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation.
A disclosure is made for a contingent liability when there is a:
- possible obligation, the existence of which will be confirmed by the occurrence/non-occurrence of one or more uncertain events, not fully with in the control of the Company;
- present obligation, where it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation;
Where there is a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.
(q) Earnings per share
Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares, except where results would be anti-dilutive.
(r) Research and development costs
Revenue expenditure on research is expensed off under the respective heads of account in the period in which it is incurred. Expenditure on development activities, whereby research findings are applied to a plan or design for the production of new or substantially improved products and processes, is capitalised, if the cost can be reliably measured, the product or process is technically and commercially feasible and the relevant entity within the group has sufficient resources to complete the development and to use and sell the asset. The expenditure capitalised includes the cost of materials, direct labour and an appropriate proportion of overheads that are directly attributable to preparing the asset for its intended use. Other development expenditure is recognised in the statement of profit and loss as an expense as incurred.
Capitalised development expenditure is stated at cost less accumulated amortisation and impairment losses.
(s) Derivative instruments
The Group uses foreign exchange forward contracts to hedge its exposure towards highly probable and forecasted transactions. These foreign exchange forward contracts are not used for trading or speculation purposes.
(i) Forward contracts where an underlying asset or liability exists
In such case, the difference between the forward rate and the exchange rate at the inception of the contract is recognised as income or expense over the life of the contract.
(ii) Forward contracts taken for highly probable/ forecast transactions
Such forward exchange contracts are marked to market at the balance sheet date if such mark to market results in exchange loss such exchange loss is recognised in the statement of profit and loss immediately. Any gain is ignored and not recognised in the financial statements in accordance with the principles of prudence enunciated in Accounting Standard 1 - ‘Disclosure of Accounting Policies’ notified under the Act.
Profit or loss arising on cancellation or renewal of a forward contract is recognised as income or expense in the period in which such cancellation or renewal is made.
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
4 Share capital
Particulars As at December 31, 2013 As at March 31, 2013
Number Amount Number Amount
AuthorisedEquity shares of Rs. 10 each 1,250,000,000 12,500,000,000 1,250,000,000 12,500,000,000
IssuedEquity shares of Rs. 10 each 198,306,104 1,983,061,040 168,306,104 1,683,061,040
Subscribed and fully paid upEquity shares of Rs. 10 each fully paid up 198,306,104 1,983,061,040 168,306,104 1,683,061,040
Total 198,306,104 1,983,061,040 168,306,104 1,683,061,040
(A) Terms and rights attached to equity shares :
The Company has one class of equity shares with a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing annual general meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.
(B) Shares allotted as fully paid up by way of bonus shares during the current reporting period and five years immediately preceding the current reporting period:
(No. of shares)
Particulars As at As at As at As at As at As atDecember 31, March 31, March 31, March 31, March 31, March 31,
2013 2013 2012 2011 2010 2009
Equity shares allotted as fully - - - - - 25,000 paid up bonus shares bycapitalization of general reserve.
(C) Reconciliation of the number of shares outstanding at the beginning and end of the reporting period:
Particulars As at December 31, 2013 As at March 31, 2013
Number Amount Number Amount
Shares outstanding at the beginning of the 168,306,104 1,683,061,040 168,306,104 1,683,061,040period/ year
Add : Shares issued during the period/ year 30,000,000 300,000,000 - -
Less : Shares bought back during the period/ year - - - -
Shares outstanding at the end of the period/ year 198,306,104 1,983,061,040 168,306,104 1,683,061,040
(D) Shareholders holding more than 5 % of equity share capital :
Name of shareholder As at December 31, 2013 As at March 31, 2013
Number of % of holding Number of % of holdingshares held shares held
Deepak Puri 57,420,141 28.95 27,420,141 16.32
International Finance Corporation* - - 15,076,791 8.96
Electra Partners Mauritius Limited 9,960,345 5.02 9,960,345 5.92
*International Finance Corporation has sold off its entire shareholdings in the secondary market during the current period.
(E) Stock option plans :
The Company has three Stock Option Plans:
(i) Employee Stock Option Plan 2004 and Director’s Stock Option Plan 2005:
The Company has granted options to its non-executive directors and employees of the Company and its subsidiaries, to be settled through issue of equity shares at exercise prices that are equal to the market price of the share on the date of the grant. The options granted vest over a period of maximum of four years from the date of grant.
110 111
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
In case of Employee Stock Option Plan-2004, the exercise price shall be as follows:
(i) Normal allocation: Rs. 125 per option or prevailing market price, whichever is higher.
(ii) Special allocation: 50% of the options at Rs. 125 per option or prevailing market price, whichever is higher and the balance 50% of the options at Rs. 170 per option or prevailing market price, whichever is higher.
In case of Directors’ Stock Option Plan, the exercise price shall be Rs. 170 per option or prevailing market price, whichever is higher.
Two options granted before the record date under the above plans entitles the holder to three equity shares of the Company.
Reconciliation of number of options granted, exercised and cancelled/lapsed during the period is as follows:
Particulars As at As atDecember 31, 2013 March 31, 2013
Number Weighted Number Weightedaverage price average price
Options outstanding at beginning of period/ year 654,450 313.02 1,233,950 257.39
Add: Options granted - - - -
Less: Options exercised - - - -
Less: Options cancelled 326,400 254.98 284,800 167.44
Less: Options lapsed 8,400 208.87 294,700 220.79
Options outstanding at the end of period/ year 319,650 254.57 654,450 313.02
Option exercisable at the end of period/ year 319,650 254.57 629,050 318.82
The options outstanding at the end of period had exercise price in the range of Rs. 125 to Rs. 491.90 (previous year Rs. 125 to Rs. 491.90) and a weighted average remaining contractual life of 1.56 years (previous year 2.04 years).
(ii) Employee Stock Option Plan-2009
The Company has established a stock option plan called “Moser Baer India Limited Stock Option Plan 2009" on September 8, 2009. The plan was set up to offer and grant stock options, in one or more tranches, to employees and directors of the Company as determined by the 'Compensation Committee' of the Company. The granted options shall be settled through issue of equity shares. The exercise price shall be as follows:
(i) Normal allocation: market price on the date of grant.
(ii) Special allocation: 50% of the options at Rs. 125 per option or prevailing market price, whichever is higher and the balance 50% of the options at Rs. 170 per option or prevailing market price, whichever is higher.
All options, whether vested or unvested, granted to grantee shall in any case expire after a period of seven years from the offer date.
Reconciliation of number of options granted, exercised and cancelled/ lapsed during the period :
Particulars As at As atDecember 31, 2013 March 31, 2013
Number Weighted Number Weightedaverage price average price
Options outstanding at beginning of period/ year 1,532,237 76.77 2,081,204 76.82
Add: Options granted - - - -
Less: Options exercised - - - -
Less: Options cancelled 267,196 75.68 548,967 76.98
Less: Options lapsed - - - -
Options outstanding at the end of period/ year 1,265,041 77.00 1,532,237 76.77
Option exercisable at the end of period/ year 837,395 77.25 926,874 77.98
The options outstanding at the end of period had exercise price in the range of Rs. 46.30 to Rs. 170.00 (previous year Rs. 46.30 to Rs. 170.00) and a weighted average remaining contractual life of 3.62 years (previous year 4.37 years).
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
4 Share capital
Particulars As at December 31, 2013 As at March 31, 2013
Number Amount Number Amount
AuthorisedEquity shares of Rs. 10 each 1,250,000,000 12,500,000,000 1,250,000,000 12,500,000,000
IssuedEquity shares of Rs. 10 each 198,306,104 1,983,061,040 168,306,104 1,683,061,040
Subscribed and fully paid upEquity shares of Rs. 10 each fully paid up 198,306,104 1,983,061,040 168,306,104 1,683,061,040
Total 198,306,104 1,983,061,040 168,306,104 1,683,061,040
(A) Terms and rights attached to equity shares :
The Company has one class of equity shares with a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing annual general meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.
(B) Shares allotted as fully paid up by way of bonus shares during the current reporting period and five years immediately preceding the current reporting period:
(No. of shares)
Particulars As at As at As at As at As at As atDecember 31, March 31, March 31, March 31, March 31, March 31,
2013 2013 2012 2011 2010 2009
Equity shares allotted as fully - - - - - 25,000 paid up bonus shares bycapitalization of general reserve.
(C) Reconciliation of the number of shares outstanding at the beginning and end of the reporting period:
Particulars As at December 31, 2013 As at March 31, 2013
Number Amount Number Amount
Shares outstanding at the beginning of the 168,306,104 1,683,061,040 168,306,104 1,683,061,040period/ year
Add : Shares issued during the period/ year 30,000,000 300,000,000 - -
Less : Shares bought back during the period/ year - - - -
Shares outstanding at the end of the period/ year 198,306,104 1,983,061,040 168,306,104 1,683,061,040
(D) Shareholders holding more than 5 % of equity share capital :
Name of shareholder As at December 31, 2013 As at March 31, 2013
Number of % of holding Number of % of holdingshares held shares held
Deepak Puri 57,420,141 28.95 27,420,141 16.32
International Finance Corporation* - - 15,076,791 8.96
Electra Partners Mauritius Limited 9,960,345 5.02 9,960,345 5.92
*International Finance Corporation has sold off its entire shareholdings in the secondary market during the current period.
(E) Stock option plans :
The Company has three Stock Option Plans:
(i) Employee Stock Option Plan 2004 and Director’s Stock Option Plan 2005:
The Company has granted options to its non-executive directors and employees of the Company and its subsidiaries, to be settled through issue of equity shares at exercise prices that are equal to the market price of the share on the date of the grant. The options granted vest over a period of maximum of four years from the date of grant.
110 111
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
In case of Employee Stock Option Plan-2004, the exercise price shall be as follows:
(i) Normal allocation: Rs. 125 per option or prevailing market price, whichever is higher.
(ii) Special allocation: 50% of the options at Rs. 125 per option or prevailing market price, whichever is higher and the balance 50% of the options at Rs. 170 per option or prevailing market price, whichever is higher.
In case of Directors’ Stock Option Plan, the exercise price shall be Rs. 170 per option or prevailing market price, whichever is higher.
Two options granted before the record date under the above plans entitles the holder to three equity shares of the Company.
Reconciliation of number of options granted, exercised and cancelled/lapsed during the period is as follows:
Particulars As at As atDecember 31, 2013 March 31, 2013
Number Weighted Number Weightedaverage price average price
Options outstanding at beginning of period/ year 654,450 313.02 1,233,950 257.39
Add: Options granted - - - -
Less: Options exercised - - - -
Less: Options cancelled 326,400 254.98 284,800 167.44
Less: Options lapsed 8,400 208.87 294,700 220.79
Options outstanding at the end of period/ year 319,650 254.57 654,450 313.02
Option exercisable at the end of period/ year 319,650 254.57 629,050 318.82
The options outstanding at the end of period had exercise price in the range of Rs. 125 to Rs. 491.90 (previous year Rs. 125 to Rs. 491.90) and a weighted average remaining contractual life of 1.56 years (previous year 2.04 years).
(ii) Employee Stock Option Plan-2009
The Company has established a stock option plan called “Moser Baer India Limited Stock Option Plan 2009" on September 8, 2009. The plan was set up to offer and grant stock options, in one or more tranches, to employees and directors of the Company as determined by the 'Compensation Committee' of the Company. The granted options shall be settled through issue of equity shares. The exercise price shall be as follows:
(i) Normal allocation: market price on the date of grant.
(ii) Special allocation: 50% of the options at Rs. 125 per option or prevailing market price, whichever is higher and the balance 50% of the options at Rs. 170 per option or prevailing market price, whichever is higher.
All options, whether vested or unvested, granted to grantee shall in any case expire after a period of seven years from the offer date.
Reconciliation of number of options granted, exercised and cancelled/ lapsed during the period :
Particulars As at As atDecember 31, 2013 March 31, 2013
Number Weighted Number Weightedaverage price average price
Options outstanding at beginning of period/ year 1,532,237 76.77 2,081,204 76.82
Add: Options granted - - - -
Less: Options exercised - - - -
Less: Options cancelled 267,196 75.68 548,967 76.98
Less: Options lapsed - - - -
Options outstanding at the end of period/ year 1,265,041 77.00 1,532,237 76.77
Option exercisable at the end of period/ year 837,395 77.25 926,874 77.98
The options outstanding at the end of period had exercise price in the range of Rs. 46.30 to Rs. 170.00 (previous year Rs. 46.30 to Rs. 170.00) and a weighted average remaining contractual life of 3.62 years (previous year 4.37 years).
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
(iii) Moser Baer Solar Plc Stock Option Plan 2008:
Moser Baer Solar Holdings Limited has established a stock option plan called ‘Moser Baer Solar Plc Stock Option Plan 2008’. The plan was established on December 18, 2008. The plan was set up so as to offer and grant stock options, in one or more tranches, to employees of Moser Baer Solar Holdings Limited, its subsidiaries and its holding companies, as the remuneration committee of Moser Baer Solar Holdings Limited may determine. The exercise price of such options shall be Rs.1,228 initially for a period of three months from the date of the Plan and thereafter till listing of the shares, as determined by remuneration committee. Subsequent to the listing of the shares on a stock exchange, the exercise price shall be the latest available closing price, prior to the date of grant, as quoted on the stock exchange on which the shares of Moser Baer Solar Holdings Limited are listed. All options, whether vested or unvested, granted to a grantee shall in any case expire after a period of seven years from the offer date.
During the year, Moser Baer Solar Holdings Limited under the 2008 plan has issued nil (previous year nil) options to eligible employees. No options have been exercised during the year. The vesting period for the option granted varies from 12 to 48 months from the date of the grant. During the previous year, the exercise price of each option has been reduced to Rs. 500.
Reconciliation of number of options granted during the period and outstanding at the end of the period:
Particulars As at As atDecember 31, 2013 March 31, 2013
Number Weighted Number Weightedaverage price average price
Options outstanding at beginning of period/ year 96,006 129.88 213,386 129.84
Add: Options granted - - - -
Less: Options cancelled 3,509 129.88 117,380 129.32
Options outstanding at the end of the period/ year 92,497 129.88 96,006 129.88
Options exercisable at the end of the period/ year 67,862 129.88 68,019 129.88
The options outstanding at the end of the period have an exercise price of Rs. 500 (previous year Rs. 500) and a weighted average remaining contractual life of 2.94 years (previous year 3.94 years).
6 Preference shares issued by subsidiary companies:
Particulars As at As atDecember 31, 2013 March 31, 2013
Number Amount Number Amount
Fully convertible preference shares of GBP 1 each fully paid up 23,784,606 1,965,749,931 23,784,606 1,965,749,931
Non- cumulative, fully convertible Re 1 dividend bearing class A preference shares of Rs.10 each fully paid up 196,450,000 1,964,500,000 196,450,000 1,964,500,000
Non- cumulative, fully convertible Re 1 dividend bearing class B preference shares of Rs.10 each fully paid up 65,000,000 650,000,000 65,000,000 650,000,000
Fully convertible class B preference shares of GBP 1 each fully paid up 43,360,485 3,575,088,640 43,360,485 3,575,088,640
Re. 1 dividend bearing non-cumulative redeemable series D preference shares of Rs. 10 each 10,000,000 100,000,000 10,000,000 100,000,000
Total 338,595,091 8,255,338,571 338,595,091 8,255,338,571
Terms and rights attached to preference shares:
(i) During the year 2007-08, Moser Baer Solar Holdings Limited allotted 23,784,606, fully convertible Class-A preference shares of GBP 1 each to Indvest Pte Limited and CDC Group Plc. The shares are compulsorily convertible into equity shares of Moser Baer Solar Holdings Limited or, subject to receipt of regulatory approvals, to be swapped with equity shares of Moser Baer Solar Holdings Limited on November 11, 2011.
(ii) During the year 2007-08, Moser Baer Solar Limited allotted 196,450,000 non-cumulative, fully convertible Re. 1 dividend bearing class A preference shares of Rs. 10 each to IDFC Private Equity Fund II and Infrastructure Development Finance Company Limited. The shares are compulsorily convertible into equity shares of the Company or, subject to receipt of regulatory approvals, to be swapped with equity shares of Moser Baer Solar Limited on November 11, 2011.
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MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
(iii) During the year 2008-09, Moser Baer Solar Limited allotted 65,000,000 non-cumulative, fully convertible Re. 1 dividend bearing class B preference shares of Rs. 10 each to IDFC Private Equity Fund II and Infrastructure Development Finance Company Limited. Immediately prior to the Initial Public Offering (IPO) date of Moser Baer Solar Holdings Limited but after receipt of regulatory approvals, these shares shall get converted into equity shares of Moser Baer Solar Holding Limited, simultaneously with conversion of class A preference shares, or in the event IPO is not completed prior to the Long Stop IPO Date, i.e., November 11, 2011, be swapped with equity shares of Moser Baer Solar Holding Limited.
(iv) During the year 2008-09, Moser Baer Solar Holdings Limited allotted 43,360,485 , fully convertible class B preference shares of GBP 1 each to Morgan Stanley & Co., CDC Group Plc., Nomura Asia MB (Cayman) Limited, CSIM Real Estate infrastructure Fund L.P and Credit Suisse NYSTRS Cleantech Fund LP. Immediately prior to the Initial Public Offering (IPO) date but after receipt of regulatory approvals, these shares shall get converted into equity shares of Moser Baer Solar Holding Limited, simultaneously with conversion of class A preference shares, or in the event IPO is not completed prior to the Long Stop IPO Date, i.e., November 11, 2011, be swapped with equity shares of Moser Baer Solar Holdings Limited .
(v) The above preference shares (referred in (i) to (iv)) issued by Moser Baer Solar Holdings Limited (‘subsidiary company’) became due for conversion on November 11, 2011 as IPO had not been completed by long stop date. The subsidiary company is in negotiations with preference shareholders for proposed conversion of such preference shares into equity shares as per the shareholders agreement. Pending finalization of such revised arrangement between Moser Baer Solar Holdings Limited and the preference shareholders as well as receipt of regulatory approvals, no equity shares have been issued by December 31, 2013.
(vi) Series D preference shares are subject to compulsory redemption within 20 years from the date of allotment thereof (March 19, 2033 for 10,000,000 shares). These shares are held by Mr. Deepak Puri.
7 Reserves and surplus
Particulars As at As atDecember 31, 2013 March 31, 2013
Capital reserve
Opening balance 181,440,000 181,440,000
Add: Additions during the period/ year - -
Less: Amount utilised during the period/ year - -
Closing balance 181,440,000 181,440,000
Securities premium account
Opening balance 6,533,172,315 7,139,740,801
Less: Premium on redemption of foreign currency convertible
bonds (refer note 47(c)) 776,861,039 606,568,486
Closing balance 5,756,311,276 6,533,172,315
Foreign currency monetary items translation difference account
Opening Balance - (97,508,432)
Add: Exchange loss of long-term foreign currency liabilities - (417,857,691)
Add: Amortised in statement of profit and loss - 515,366,123
Closing Balance - -
Foreign currency translation reserve
Opening balance (29,472,204) (29,472,204)
Add: Additions during the period/ year - -
Less: Amount utilised during the period/ year - -
Closing balance (29,472,204) (29,472,204)
Deficit as per statement of profit and loss
Opening balance (25,847,620,873) (16,685,300,865)
Add: Net loss for the period/ year (6,955,644,158) (9,162,320,008)
Closing balance (32,803,265,031) (25,847,620,873)
Total (26,894,985,959) (19,162,480,762)
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
(iii) Moser Baer Solar Plc Stock Option Plan 2008:
Moser Baer Solar Holdings Limited has established a stock option plan called ‘Moser Baer Solar Plc Stock Option Plan 2008’. The plan was established on December 18, 2008. The plan was set up so as to offer and grant stock options, in one or more tranches, to employees of Moser Baer Solar Holdings Limited, its subsidiaries and its holding companies, as the remuneration committee of Moser Baer Solar Holdings Limited may determine. The exercise price of such options shall be Rs.1,228 initially for a period of three months from the date of the Plan and thereafter till listing of the shares, as determined by remuneration committee. Subsequent to the listing of the shares on a stock exchange, the exercise price shall be the latest available closing price, prior to the date of grant, as quoted on the stock exchange on which the shares of Moser Baer Solar Holdings Limited are listed. All options, whether vested or unvested, granted to a grantee shall in any case expire after a period of seven years from the offer date.
During the year, Moser Baer Solar Holdings Limited under the 2008 plan has issued nil (previous year nil) options to eligible employees. No options have been exercised during the year. The vesting period for the option granted varies from 12 to 48 months from the date of the grant. During the previous year, the exercise price of each option has been reduced to Rs. 500.
Reconciliation of number of options granted during the period and outstanding at the end of the period:
Particulars As at As atDecember 31, 2013 March 31, 2013
Number Weighted Number Weightedaverage price average price
Options outstanding at beginning of period/ year 96,006 129.88 213,386 129.84
Add: Options granted - - - -
Less: Options cancelled 3,509 129.88 117,380 129.32
Options outstanding at the end of the period/ year 92,497 129.88 96,006 129.88
Options exercisable at the end of the period/ year 67,862 129.88 68,019 129.88
The options outstanding at the end of the period have an exercise price of Rs. 500 (previous year Rs. 500) and a weighted average remaining contractual life of 2.94 years (previous year 3.94 years).
6 Preference shares issued by subsidiary companies:
Particulars As at As atDecember 31, 2013 March 31, 2013
Number Amount Number Amount
Fully convertible preference shares of GBP 1 each fully paid up 23,784,606 1,965,749,931 23,784,606 1,965,749,931
Non- cumulative, fully convertible Re 1 dividend bearing class A preference shares of Rs.10 each fully paid up 196,450,000 1,964,500,000 196,450,000 1,964,500,000
Non- cumulative, fully convertible Re 1 dividend bearing class B preference shares of Rs.10 each fully paid up 65,000,000 650,000,000 65,000,000 650,000,000
Fully convertible class B preference shares of GBP 1 each fully paid up 43,360,485 3,575,088,640 43,360,485 3,575,088,640
Re. 1 dividend bearing non-cumulative redeemable series D preference shares of Rs. 10 each 10,000,000 100,000,000 10,000,000 100,000,000
Total 338,595,091 8,255,338,571 338,595,091 8,255,338,571
Terms and rights attached to preference shares:
(i) During the year 2007-08, Moser Baer Solar Holdings Limited allotted 23,784,606, fully convertible Class-A preference shares of GBP 1 each to Indvest Pte Limited and CDC Group Plc. The shares are compulsorily convertible into equity shares of Moser Baer Solar Holdings Limited or, subject to receipt of regulatory approvals, to be swapped with equity shares of Moser Baer Solar Holdings Limited on November 11, 2011.
(ii) During the year 2007-08, Moser Baer Solar Limited allotted 196,450,000 non-cumulative, fully convertible Re. 1 dividend bearing class A preference shares of Rs. 10 each to IDFC Private Equity Fund II and Infrastructure Development Finance Company Limited. The shares are compulsorily convertible into equity shares of the Company or, subject to receipt of regulatory approvals, to be swapped with equity shares of Moser Baer Solar Limited on November 11, 2011.
112 113
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
(iii) During the year 2008-09, Moser Baer Solar Limited allotted 65,000,000 non-cumulative, fully convertible Re. 1 dividend bearing class B preference shares of Rs. 10 each to IDFC Private Equity Fund II and Infrastructure Development Finance Company Limited. Immediately prior to the Initial Public Offering (IPO) date of Moser Baer Solar Holdings Limited but after receipt of regulatory approvals, these shares shall get converted into equity shares of Moser Baer Solar Holding Limited, simultaneously with conversion of class A preference shares, or in the event IPO is not completed prior to the Long Stop IPO Date, i.e., November 11, 2011, be swapped with equity shares of Moser Baer Solar Holding Limited.
(iv) During the year 2008-09, Moser Baer Solar Holdings Limited allotted 43,360,485 , fully convertible class B preference shares of GBP 1 each to Morgan Stanley & Co., CDC Group Plc., Nomura Asia MB (Cayman) Limited, CSIM Real Estate infrastructure Fund L.P and Credit Suisse NYSTRS Cleantech Fund LP. Immediately prior to the Initial Public Offering (IPO) date but after receipt of regulatory approvals, these shares shall get converted into equity shares of Moser Baer Solar Holding Limited, simultaneously with conversion of class A preference shares, or in the event IPO is not completed prior to the Long Stop IPO Date, i.e., November 11, 2011, be swapped with equity shares of Moser Baer Solar Holdings Limited .
(v) The above preference shares (referred in (i) to (iv)) issued by Moser Baer Solar Holdings Limited (‘subsidiary company’) became due for conversion on November 11, 2011 as IPO had not been completed by long stop date. The subsidiary company is in negotiations with preference shareholders for proposed conversion of such preference shares into equity shares as per the shareholders agreement. Pending finalization of such revised arrangement between Moser Baer Solar Holdings Limited and the preference shareholders as well as receipt of regulatory approvals, no equity shares have been issued by December 31, 2013.
(vi) Series D preference shares are subject to compulsory redemption within 20 years from the date of allotment thereof (March 19, 2033 for 10,000,000 shares). These shares are held by Mr. Deepak Puri.
7 Reserves and surplus
Particulars As at As atDecember 31, 2013 March 31, 2013
Capital reserve
Opening balance 181,440,000 181,440,000
Add: Additions during the period/ year - -
Less: Amount utilised during the period/ year - -
Closing balance 181,440,000 181,440,000
Securities premium account
Opening balance 6,533,172,315 7,139,740,801
Less: Premium on redemption of foreign currency convertible
bonds (refer note 47(c)) 776,861,039 606,568,486
Closing balance 5,756,311,276 6,533,172,315
Foreign currency monetary items translation difference account
Opening Balance - (97,508,432)
Add: Exchange loss of long-term foreign currency liabilities - (417,857,691)
Add: Amortised in statement of profit and loss - 515,366,123
Closing Balance - -
Foreign currency translation reserve
Opening balance (29,472,204) (29,472,204)
Add: Additions during the period/ year - -
Less: Amount utilised during the period/ year - -
Closing balance (29,472,204) (29,472,204)
Deficit as per statement of profit and loss
Opening balance (25,847,620,873) (16,685,300,865)
Add: Net loss for the period/ year (6,955,644,158) (9,162,320,008)
Closing balance (32,803,265,031) (25,847,620,873)
Total (26,894,985,959) (19,162,480,762)
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
8 Share application money pending allotment
Particulars As at As atDecember 31, 2013 March 31, 2013
Number Amount Number Amount
Equity shares of face value Rs 10 each proposed to be issued 8,250,000 82,500,000 20,000,000 200,000,000
8,250,000 82,500,000 20,000,000 200,000,000
In parent company share application money pending allotment represents contribution received from promoters under the corporate debt restructuring scheme. Subsequent to December 31, 2013, the promoter has further infused Rs. 37,000,000 pursuant to which the Company on February 28, 2014 has issued 10,000,000 equity shares of Rs. 10 each. The company has sufficient authorized capital to cover the share capital amount on allotment of above shares.
In one of the subsidiary, Moser Baer Solar Limited, share application money pending allotment represents contribution received from promoters under the corporate debt restructuring scheme. Subsequent to December 31, 2013, non-cumulative Re. 1 dividend bearing 1,950,000 Series E redeemable preference shares of Rs. 10 each at par were allotted on preferential basis on January 24, 2014. All these preference shares are redeemable within a period of 20 years from the date of allotment of these preference shares.
9 Long term borrowings
Particulars As at As atDecember 31, 2013 March 31, 2013
Secured
Rupee loans
- From banks
- Term loans 14,663,729,628 14,326,224,035
- Working capital term loans 6,596,597,476 1,276,436,000
- Funded interest term loans 3,863,181,843 1,442,439,052
- From others
- Term loans 738,632,086 719,204,208
- Working capital term loans 140,300,000 3,990,161,476
- Funded interest term loans 44,397,677 845,462,721
26,046,838,710 22,599,927,492
Less: Current maturities of long-term debts (refer note 14) 2,905,108,403 2,770,221,516
23,141,730,307 19,829,705,976
Foreign currency loans
- From banks 592,162,411 877,177,267
- From others 1,914,049,761 1,680,791,393
2,506,212,172 2,557,968,660
Less: Current maturities of long-term debts (refer note 14) 1,415,751,967 1,484,671,026
1,090,460,205 1,073,297,634
Total 24,232,190,512 20,903,003,610
114 115
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
9 Additional disclosures:
(a) Secured borrowings:
(i) Nature of security and terms of repayment for secured borrowings as at December 31, 2013 (rupee loans):
Particulars As at December 31, 2013
Rupee term loans 9,581,198,806 (i) First pari-passu charge on the (ii) Second pari-passu charge on the current after moratorium of 2 years from cut off
assets of the Company. date i.e. November 30, 2011(iii) Pledge of 100% shareholding of the commencing from February 2014
promoters of the Company.(iv) Personal guarantee of Mr. Deepak Puri
and Mrs. Nita Puri.(v) Negative lien on land of Moser Baer
Infrastructure and Developer Limited at Chennai on pari-passu basis.
(vi) Corporate guarantee of Moser Baer Infrastructure and Developers Limited (subsidiary of the Company that owns the rights to the Chennai land).
(vii) Pledge of shares of Moser Baer Infrastructure and Developers Limited.
Rupee term loans 270,826,000 (i) First pari-passu charge by way of mortgage Repayable in 30 unequal quarterly (vide approval of concerned land authority) installment from the end of on the immovable properties acquired on moratorium period i.e March 31, 2014. sub-lease from MBIL comprising of 19,736 First installment commencing fromsquare metres of land at plot 66 B, Udyog June 30, 2014 Vihar, Greater Noida, Uttar Pradesh, together with all buildings and structures thereon and all plant and machinery attached to the earth or permanently fastened by anything attached to the earth, both present and future.
(ii) Personal guarantee of Mr. Deepak Puri.(iii) Corporate guarantee of Moser Baer India
Limited.(iv) Pari-passu charge by way of equitable
mortgage of plot admeasuring 566.05 bighas along with superstructure thereon, situated at village Tinwari , District Jodhpur, Rajasthan (pending receipt of no objection certificate (NOC) from Jodhpur Land Authority).
Rupee term loans 225,000,270 (i) First pari-passu charge by way of mortgage Repayable in 30 unequal quarterly on the immoveable properties acquired installment from the end of on sublease form MBIL comprising of moratorium period i.e March 31, 2014. 19,736 square meters of land at plot 66 B, First installment commencing from Udyog Vihar, Greater Noida, Uttar June 30, 2014Pradesh, together with all buildings and structures thereon and all plant and machinery attached to the earth or permanently fastened by anything attached to the earth, both present and future and hypothecation on entire movable fixed assets.
(ii) Personal guarantee of Mr. Deepak Puri.(iii) Corporate guarantee of Moser Baer India
Limited.(iv) First pari-passu charge by way of equitable
mortgage of plot admeasuring 566.05 bighas along with superstructure thereon, situated at village Tinwari , District Jodhpur, Rajasthan. (pending receipt of no objection certificate(NOC) from Jodhpur Land Authority).
Nature of security Terms of repayment
fixed assets. Repayable in 32 quarterly installments
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
8 Share application money pending allotment
Particulars As at As atDecember 31, 2013 March 31, 2013
Number Amount Number Amount
Equity shares of face value Rs 10 each proposed to be issued 8,250,000 82,500,000 20,000,000 200,000,000
8,250,000 82,500,000 20,000,000 200,000,000
In parent company share application money pending allotment represents contribution received from promoters under the corporate debt restructuring scheme. Subsequent to December 31, 2013, the promoter has further infused Rs. 37,000,000 pursuant to which the Company on February 28, 2014 has issued 10,000,000 equity shares of Rs. 10 each. The company has sufficient authorized capital to cover the share capital amount on allotment of above shares.
In one of the subsidiary, Moser Baer Solar Limited, share application money pending allotment represents contribution received from promoters under the corporate debt restructuring scheme. Subsequent to December 31, 2013, non-cumulative Re. 1 dividend bearing 1,950,000 Series E redeemable preference shares of Rs. 10 each at par were allotted on preferential basis on January 24, 2014. All these preference shares are redeemable within a period of 20 years from the date of allotment of these preference shares.
9 Long term borrowings
Particulars As at As atDecember 31, 2013 March 31, 2013
Secured
Rupee loans
- From banks
- Term loans 14,663,729,628 14,326,224,035
- Working capital term loans 6,596,597,476 1,276,436,000
- Funded interest term loans 3,863,181,843 1,442,439,052
- From others
- Term loans 738,632,086 719,204,208
- Working capital term loans 140,300,000 3,990,161,476
- Funded interest term loans 44,397,677 845,462,721
26,046,838,710 22,599,927,492
Less: Current maturities of long-term debts (refer note 14) 2,905,108,403 2,770,221,516
23,141,730,307 19,829,705,976
Foreign currency loans
- From banks 592,162,411 877,177,267
- From others 1,914,049,761 1,680,791,393
2,506,212,172 2,557,968,660
Less: Current maturities of long-term debts (refer note 14) 1,415,751,967 1,484,671,026
1,090,460,205 1,073,297,634
Total 24,232,190,512 20,903,003,610
114 115
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
9 Additional disclosures:
(a) Secured borrowings:
(i) Nature of security and terms of repayment for secured borrowings as at December 31, 2013 (rupee loans):
Particulars As at December 31, 2013
Rupee term loans 9,581,198,806 (i) First pari-passu charge on the (ii) Second pari-passu charge on the current after moratorium of 2 years from cut off
assets of the Company. date i.e. November 30, 2011(iii) Pledge of 100% shareholding of the commencing from February 2014
promoters of the Company.(iv) Personal guarantee of Mr. Deepak Puri
and Mrs. Nita Puri.(v) Negative lien on land of Moser Baer
Infrastructure and Developer Limited at Chennai on pari-passu basis.
(vi) Corporate guarantee of Moser Baer Infrastructure and Developers Limited (subsidiary of the Company that owns the rights to the Chennai land).
(vii) Pledge of shares of Moser Baer Infrastructure and Developers Limited.
Rupee term loans 270,826,000 (i) First pari-passu charge by way of mortgage Repayable in 30 unequal quarterly (vide approval of concerned land authority) installment from the end of on the immovable properties acquired on moratorium period i.e March 31, 2014. sub-lease from MBIL comprising of 19,736 First installment commencing fromsquare metres of land at plot 66 B, Udyog June 30, 2014 Vihar, Greater Noida, Uttar Pradesh, together with all buildings and structures thereon and all plant and machinery attached to the earth or permanently fastened by anything attached to the earth, both present and future.
(ii) Personal guarantee of Mr. Deepak Puri.(iii) Corporate guarantee of Moser Baer India
Limited.(iv) Pari-passu charge by way of equitable
mortgage of plot admeasuring 566.05 bighas along with superstructure thereon, situated at village Tinwari , District Jodhpur, Rajasthan (pending receipt of no objection certificate (NOC) from Jodhpur Land Authority).
Rupee term loans 225,000,270 (i) First pari-passu charge by way of mortgage Repayable in 30 unequal quarterly on the immoveable properties acquired installment from the end of on sublease form MBIL comprising of moratorium period i.e March 31, 2014. 19,736 square meters of land at plot 66 B, First installment commencing from Udyog Vihar, Greater Noida, Uttar June 30, 2014Pradesh, together with all buildings and structures thereon and all plant and machinery attached to the earth or permanently fastened by anything attached to the earth, both present and future and hypothecation on entire movable fixed assets.
(ii) Personal guarantee of Mr. Deepak Puri.(iii) Corporate guarantee of Moser Baer India
Limited.(iv) First pari-passu charge by way of equitable
mortgage of plot admeasuring 566.05 bighas along with superstructure thereon, situated at village Tinwari , District Jodhpur, Rajasthan. (pending receipt of no objection certificate(NOC) from Jodhpur Land Authority).
Nature of security Terms of repayment
fixed assets. Repayable in 32 quarterly installments
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
Particulars As at Nature of security Terms of repayment December 31, 2013
Rupee term loans 460,700,000 (i) First pari-passu charge by way of hypothecation of the existing and future installment from the end ofcurrent assets of the Company and moratorium period i.e March 31, 2014.second pari-passu charge by way of First installment commencing from hypothecation of all or part of machinery, June 30, 2014 accessories, equipments, stores andspares etc including electric equipments, DG set and other related items installed or to be installed at premises at plot 66 B or anywhere else.
(ii) Personal guarantee of Mr. Deepak Puri.(iii) First pari-passu charge on entire fixed
assets and second pari-passu charge on all current assets.
(iv) Corporate guarantee of Moser Baer India Limited.
(v) Pari-passu charge by way of equitable mortgage of plot admeasuring 566.05 bighas along with superstructure thereon, situated at village Tinwari , District Jodhpur, Rajasthan (pending receipt of no objection certificate (NOC) from Jodhpur Land Authority).
(vi) The said loan is additionally secured by assignment of bank guarantee.
Rupee term loans 525,400,000 (i) First pari-passu charge by way of Repayable in 30 unequal quarterly
hypothecation over current assets (both installment from the end of
present and future) of the Company. moratorium period i.e March 31, 2014.
(ii) Personal guarantee of Mr. Deepak Puri. First installment commencing from
(iii) Corporate guarantee of Moser Baer India June 30, 2014.
Limited.
(iv) Pari-passu charge by way of equitable
mortgage of plot admeasuring 566.05
bighas along with superstructure thereon,
situated at village Tinwari , District
Jodhpur, Rajasthan (pending receipt of no
objection certificate (NOC) from Jodhpur
Land Authority).
(v) The said loan is additionally secured by
assignment of bank guarantee.
Rupee term loans 120,000,000 (i) First pari-passu charge by way of Repayable in 30 unequal quarterly hypothecation of the existing and future installment from the end of current assets of the Company and second moratorium period i.e March 31, 2014. pari-passu charge on fixed assets of the First installment commencing from
Rupee term loans 130,000,000 Company. June 30, 2014(ii) Personal guarantee of Mr. Deepak Puri.(iii) Corporate guarantee of Moser Baer India
Limited.(iv) Pari-passu charge by way of equitable
mortgage of plot admeasuring 566.05 bighas along with superstructure thereon, situated at village Tinwari, District Jodhpur, Rajasthan (pending receipt of no objection certificate (NOC) from Jodhpur Land Authority).
Rupee term loans 4,089,236,638 (i) First pari-passu charge by way of Repayable in 31 unequal installmentmortgage on entire fixed assets, immovable from end of moratorium period i.e. properties plot no 66 B Udyog Vihar, Greater March 31, 2014.First installment Noida comprising of 21,000 square metres commencing from June, 2014.of land together with building and
Repayable in 30 unequal quarterly
116 117
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
Particulars As at Nature of security Terms of repayment December 31, 2013
structures constructed/to be constructed with fixed plant and machinery and hypothecation on movable fixed assets.
(ii) Second pari passu charge on entire current assets, both present and future, of the Company (subject to no objection certificate (NOC) from Bank of Baroda).
(iii) Personal guarantee of Mr. Deepak Puri and Nita Puri.
(iv) Corporate guarantee of Moser Baer India Limited.
Working capital term 1,470,300,000 (i) First pari-passu charge by way of Repayable in 31 unequal installment loans hypothecation on movable fixed assets of from end of moratorium period i.e.
the company. March 31, 2014.First installment(ii) Second pari passu charge on entire current commencing from June, 2014.
assets, both present and future, of the company (subject to no objection certificate (NOC) from Bank of Baroda).
(iii) Personal guarantee of Mr. Deepak Puri and Nita Puri.
(iv) Corporate guarantee of Moser Baer India Limited.
Funded interest term 1,275,971,450 (i) First pari-passu charge by way of loans hypothecation on movable fixed assets of
the company.(ii) Second pari passu charge on entire current
assets, both present and future, of the company (subject to no objection certificate (NOC) from Bank of Baroda).
(iii) Personal guarantee of Mr. Deepak Puri and Mrs. Nita Puri.
Working capital term 1,399,900,000 (i) First pari-passu charge on the fixed assets. Repayable in 16 quarterly installments loans (ii) Second pari-passu charge on the current after moratorium of 2 years from cut
assets of the Company. off date i.e. November 30, 2011,(iii) Pledge of 100% shareholding of the commencing from February 2014.
promoters of the Company.(iv) Personal guarantee of Mr. Deepak Puri and
Mrs. Nita Puri.(v) Negative lien on land of Moser Baer
Infrastructure and Developer Limited at Chennai on pari-passu basis.
Funded interest term 1,231,469,623 (vi) Corporate guarantee of Moser Baer Repayable in 7 quarterly installmentsloans Infrastructure and Developers Limited commencing from September 30,
(subsidiary of the Company that owns the 2013. rights to the Chennai land).
(vii) Pledge of shares of Moser Baer Infrastructure and Developers Limited.
Working capital term 3,866,697,476 (i) First pari-passu charge by way of Repayable in 30 unequal quarterlyloans hypothecation on entire movable fixed installment from the end of
assets of the Company (pending approval moratorium period i.e March 31,from IFC- Washington) and second 2014. First installment commencingpari-passu charge on current assets of from June 30, 2014.the Company.
(ii) Corporate guarantee of Moser Baer India Limited.
(iii) Personal guarantee of Mr. Deepak Puri.(iv) First pari-passu charge by way of equitable
mortgage of plot admeasuring 566.05 bighas along with superstructure thereon, situated at village Tinwari, District Jodhpur, Rajasthan (pending receipt of no objection certificate (NOC) from Jodhpur Land Authority).
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
Particulars As at Nature of security Terms of repayment December 31, 2013
Rupee term loans 460,700,000 (i) First pari-passu charge by way of hypothecation of the existing and future installment from the end ofcurrent assets of the Company and moratorium period i.e March 31, 2014.second pari-passu charge by way of First installment commencing from hypothecation of all or part of machinery, June 30, 2014 accessories, equipments, stores andspares etc including electric equipments, DG set and other related items installed or to be installed at premises at plot 66 B or anywhere else.
(ii) Personal guarantee of Mr. Deepak Puri.(iii) First pari-passu charge on entire fixed
assets and second pari-passu charge on all current assets.
(iv) Corporate guarantee of Moser Baer India Limited.
(v) Pari-passu charge by way of equitable mortgage of plot admeasuring 566.05 bighas along with superstructure thereon, situated at village Tinwari , District Jodhpur, Rajasthan (pending receipt of no objection certificate (NOC) from Jodhpur Land Authority).
(vi) The said loan is additionally secured by assignment of bank guarantee.
Rupee term loans 525,400,000 (i) First pari-passu charge by way of Repayable in 30 unequal quarterly
hypothecation over current assets (both installment from the end of
present and future) of the Company. moratorium period i.e March 31, 2014.
(ii) Personal guarantee of Mr. Deepak Puri. First installment commencing from
(iii) Corporate guarantee of Moser Baer India June 30, 2014.
Limited.
(iv) Pari-passu charge by way of equitable
mortgage of plot admeasuring 566.05
bighas along with superstructure thereon,
situated at village Tinwari , District
Jodhpur, Rajasthan (pending receipt of no
objection certificate (NOC) from Jodhpur
Land Authority).
(v) The said loan is additionally secured by
assignment of bank guarantee.
Rupee term loans 120,000,000 (i) First pari-passu charge by way of Repayable in 30 unequal quarterly hypothecation of the existing and future installment from the end of current assets of the Company and second moratorium period i.e March 31, 2014. pari-passu charge on fixed assets of the First installment commencing from
Rupee term loans 130,000,000 Company. June 30, 2014(ii) Personal guarantee of Mr. Deepak Puri.(iii) Corporate guarantee of Moser Baer India
Limited.(iv) Pari-passu charge by way of equitable
mortgage of plot admeasuring 566.05 bighas along with superstructure thereon, situated at village Tinwari, District Jodhpur, Rajasthan (pending receipt of no objection certificate (NOC) from Jodhpur Land Authority).
Rupee term loans 4,089,236,638 (i) First pari-passu charge by way of Repayable in 31 unequal installmentmortgage on entire fixed assets, immovable from end of moratorium period i.e. properties plot no 66 B Udyog Vihar, Greater March 31, 2014.First installment Noida comprising of 21,000 square metres commencing from June, 2014.of land together with building and
Repayable in 30 unequal quarterly
116 117
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
Particulars As at Nature of security Terms of repayment December 31, 2013
structures constructed/to be constructed with fixed plant and machinery and hypothecation on movable fixed assets.
(ii) Second pari passu charge on entire current assets, both present and future, of the Company (subject to no objection certificate (NOC) from Bank of Baroda).
(iii) Personal guarantee of Mr. Deepak Puri and Nita Puri.
(iv) Corporate guarantee of Moser Baer India Limited.
Working capital term 1,470,300,000 (i) First pari-passu charge by way of Repayable in 31 unequal installment loans hypothecation on movable fixed assets of from end of moratorium period i.e.
the company. March 31, 2014.First installment(ii) Second pari passu charge on entire current commencing from June, 2014.
assets, both present and future, of the company (subject to no objection certificate (NOC) from Bank of Baroda).
(iii) Personal guarantee of Mr. Deepak Puri and Nita Puri.
(iv) Corporate guarantee of Moser Baer India Limited.
Funded interest term 1,275,971,450 (i) First pari-passu charge by way of loans hypothecation on movable fixed assets of
the company.(ii) Second pari passu charge on entire current
assets, both present and future, of the company (subject to no objection certificate (NOC) from Bank of Baroda).
(iii) Personal guarantee of Mr. Deepak Puri and Mrs. Nita Puri.
Working capital term 1,399,900,000 (i) First pari-passu charge on the fixed assets. Repayable in 16 quarterly installments loans (ii) Second pari-passu charge on the current after moratorium of 2 years from cut
assets of the Company. off date i.e. November 30, 2011,(iii) Pledge of 100% shareholding of the commencing from February 2014.
promoters of the Company.(iv) Personal guarantee of Mr. Deepak Puri and
Mrs. Nita Puri.(v) Negative lien on land of Moser Baer
Infrastructure and Developer Limited at Chennai on pari-passu basis.
Funded interest term 1,231,469,623 (vi) Corporate guarantee of Moser Baer Repayable in 7 quarterly installmentsloans Infrastructure and Developers Limited commencing from September 30,
(subsidiary of the Company that owns the 2013. rights to the Chennai land).
(vii) Pledge of shares of Moser Baer Infrastructure and Developers Limited.
Working capital term 3,866,697,476 (i) First pari-passu charge by way of Repayable in 30 unequal quarterlyloans hypothecation on entire movable fixed installment from the end of
assets of the Company (pending approval moratorium period i.e March 31,from IFC- Washington) and second 2014. First installment commencingpari-passu charge on current assets of from June 30, 2014.the Company.
(ii) Corporate guarantee of Moser Baer India Limited.
(iii) Personal guarantee of Mr. Deepak Puri.(iv) First pari-passu charge by way of equitable
mortgage of plot admeasuring 566.05 bighas along with superstructure thereon, situated at village Tinwari, District Jodhpur, Rajasthan (pending receipt of no objection certificate (NOC) from Jodhpur Land Authority).
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
Particulars As at Nature of security Terms of repayment December 31, 2013
Funded interest term loans hypothecation on entire movable fixed installment from the end of
assets of the Company (pending approval moratorium period i.e March 31, 2014. from IFC- Washington) and second First installment commencing frompari-passu charge on current assets of June 30, 2014.the Company.
(ii) Personal guarantee of Mr. Deepak Puri.(iii) First pari-passu charge by way of equitable
mortgage of plot admeasuring 566.05 bighas along with superstructure thereon, situated at village Tinwari, District Jodhpur, Rajasthan (pending receipt of no objection certificate (NOC) from Jodhpur Land Authority).
Total 26,046,838,710
Less: Current portion of long-term debts 2,905,108,403
Net long-term borrowings 23,141,730,307
1,400,138,447 (i) First pari-passu charge by way of Repayable in 20 unequal quarterly
Nature of security and terms of repayment for secured borrowings as at March 31, 2013 (rupee loans):
Particulars As at Nature of security Terms of repayment March 31, 2013
Rupee term loans 9,581,198,806 (i) First pari-passu charge on the fixed assets. Repayable in 32 quarterly installments(ii) Second pari-passu charge on the current after moratorium of 2 years from cut
assets of the Company. off date i.e. November 30, 2011(iii) Pledge of 100% shareholding of the commencing from February 2014.
promoters of the Company.(iv) Personal guarantee of Mr. Deepak Puri and
Mrs. Nita Puri.(v) Negative lien on land of Moser Baer
Infrastructure and Developer Limited (a subsidiary of the Company) at Chennai on pari-passu basis.
(vi) Corporate guarantee of Moser Baer Infrastructure and Developers Limited (subsidiary of the Company).
(vii) Pledge of shares of Moser Baer Infrastructure and Developers Limited (a subsidiary of the Company).
Rupee term loans 18,750,000 First pari-passu charge on fixed assets of the Repayable in 16 quarterly installmentsCompany. effective from May 2008.
Rupee term loans 270,826,000 (i) First pari-passu charge by way of Repayable in 30 unequal quarterlymortgage on the immovable properties installment from the end of comprising of 19,736 square metres of moratorium period i.e. March 31, land at plot 66 B together with all buildings 2014. First installment commencing and structures thereon and all plant and from June 30, 2014. machinery attached to the earth or permanently fastened by anything attached to the earth, both present and future.
(ii) Personal guarantee of Mr. Deepak Puri.
Rupee term loans 225,000,270 (i) First pari-passu charge for rupee term loan and second pari-passu charge for working capital facilities by way of mortgage on the immovable properties comprising of 19,736 square metres of land at plot 66 B together with all buildings and structures thereon and all plant and machinery attached to the earth or permanently fastened by anything attached to the earth, both present and future.
(ii) Personal guarantee of Mr. Deepak Puri.
118 119
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
Particulars As at Nature of security Terms of repayment March 31, 2013
Rupee term loans 460,700,000 (i) First pari-passu charge by way of hypothecation Repayable in 30 unequal quarterlyof the existing and future current assets of installment from the end of Helios Photo Voltaic Limited (a subsidiary moratorium period i.e. March 31, of the Company, formerly known as Moser 2014. First installment commencing Baer Photo Voltaic Limited) and second from June 30, 2014. pari-passu charge by way of hypothecation of all or part of machinery, accessories, equipments, stores and spares etc. including electric equipments, DG set and other related items installed or to be installed at borrower’s premises at plot 66 B or anywhere else.
(ii) Personal guarantee of Mr. Deepak Puri.
Rupee term loans 525,400,000 (i) First pari-passu charge by way of hypothecation over current assets (both present and future) of Helios Photo Voltaic Limited (formerly known as Moser Baer Photo Voltaic Limited (a subsidiary of the Company))
(ii) Personal guarantee of Mr. Deepak Puri.
Rupee term loans 120,000,000 (i) First pari-passu charge by way of hypothecation of the existing and future current assets of Helios Photo Voltaic Limited (formerly known as Moser Baer
Rupee term loans 130,000,000 Photo Voltaic Limited (a subsidiary of the Company) and second pari-passu charge on the fixed assets of Helios Photo Voltaic Limited (formerly known as Moser Baer Photo Voltaic Limited (a subsidiary of the Company)).
(ii) Personal guarantee of Mr. Deepak Puri.
Rupee term loans 346,663,000 First pari-passu charge by way of mortgage Repayable in -23 equal installments ofon the immovable properties of Moser Rs. 26,667,0001 installment of Rs. Baer Solar Limited (a subsidiary of the 26,659,000 (effective from AprilCompany) comprising of 21,000 square 2009). metres of land together with building and structures constructed/to be constructed with fixed plant and machinery.
Rupee term loans 59,139,900 First pari-passu charge by way of mortgage on Repayable in -23 equal installments of the immovable properties of Moser Baer Solar Rs. 4,930,0001 installment of Rs. Limited (a subsidiary of the Company) 26,659,000 (effective from Aprilcomprising of 21,000 square metres of land 2009). together with building and structures constructed/to be constructed with fixed plant and machinery.
Rupee term loans 308,833,331 First pari-passu charge on the immovable Repayable in 24 equal installments properties of Moser Baer Solar Limited (a effective from March 2008 after a subsidiary of the Company) at plot 66 B moratorium of 12 months.comprising of 21,000 square metres of land together with building and structures constructed/to be constructed with fixed plant and machinery.
Rupee term loans 407,618,651 First pari-passu charge on fixed assets and Repayable in 20 equal installments second pari-passu charge by way of effective from September 2013.hypothecation on current assets of the Moser Baer Solar Limited (a subsidiary of the Company).Further pari-passu charge by way of mortgageover plot 66 B Udyog Vihar admeasuring 21,000square metres situated in Greater Noida along with building structures thereon.
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
Particulars As at Nature of security Terms of repayment December 31, 2013
Funded interest term loans hypothecation on entire movable fixed installment from the end of
assets of the Company (pending approval moratorium period i.e March 31, 2014. from IFC- Washington) and second First installment commencing frompari-passu charge on current assets of June 30, 2014.the Company.
(ii) Personal guarantee of Mr. Deepak Puri.(iii) First pari-passu charge by way of equitable
mortgage of plot admeasuring 566.05 bighas along with superstructure thereon, situated at village Tinwari, District Jodhpur, Rajasthan (pending receipt of no objection certificate (NOC) from Jodhpur Land Authority).
Total 26,046,838,710
Less: Current portion of long-term debts 2,905,108,403
Net long-term borrowings 23,141,730,307
1,400,138,447 (i) First pari-passu charge by way of Repayable in 20 unequal quarterly
Nature of security and terms of repayment for secured borrowings as at March 31, 2013 (rupee loans):
Particulars As at Nature of security Terms of repayment March 31, 2013
Rupee term loans 9,581,198,806 (i) First pari-passu charge on the fixed assets. Repayable in 32 quarterly installments(ii) Second pari-passu charge on the current after moratorium of 2 years from cut
assets of the Company. off date i.e. November 30, 2011(iii) Pledge of 100% shareholding of the commencing from February 2014.
promoters of the Company.(iv) Personal guarantee of Mr. Deepak Puri and
Mrs. Nita Puri.(v) Negative lien on land of Moser Baer
Infrastructure and Developer Limited (a subsidiary of the Company) at Chennai on pari-passu basis.
(vi) Corporate guarantee of Moser Baer Infrastructure and Developers Limited (subsidiary of the Company).
(vii) Pledge of shares of Moser Baer Infrastructure and Developers Limited (a subsidiary of the Company).
Rupee term loans 18,750,000 First pari-passu charge on fixed assets of the Repayable in 16 quarterly installmentsCompany. effective from May 2008.
Rupee term loans 270,826,000 (i) First pari-passu charge by way of Repayable in 30 unequal quarterlymortgage on the immovable properties installment from the end of comprising of 19,736 square metres of moratorium period i.e. March 31, land at plot 66 B together with all buildings 2014. First installment commencing and structures thereon and all plant and from June 30, 2014. machinery attached to the earth or permanently fastened by anything attached to the earth, both present and future.
(ii) Personal guarantee of Mr. Deepak Puri.
Rupee term loans 225,000,270 (i) First pari-passu charge for rupee term loan and second pari-passu charge for working capital facilities by way of mortgage on the immovable properties comprising of 19,736 square metres of land at plot 66 B together with all buildings and structures thereon and all plant and machinery attached to the earth or permanently fastened by anything attached to the earth, both present and future.
(ii) Personal guarantee of Mr. Deepak Puri.
118 119
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
Particulars As at Nature of security Terms of repayment March 31, 2013
Rupee term loans 460,700,000 (i) First pari-passu charge by way of hypothecation Repayable in 30 unequal quarterlyof the existing and future current assets of installment from the end of Helios Photo Voltaic Limited (a subsidiary moratorium period i.e. March 31, of the Company, formerly known as Moser 2014. First installment commencing Baer Photo Voltaic Limited) and second from June 30, 2014. pari-passu charge by way of hypothecation of all or part of machinery, accessories, equipments, stores and spares etc. including electric equipments, DG set and other related items installed or to be installed at borrower’s premises at plot 66 B or anywhere else.
(ii) Personal guarantee of Mr. Deepak Puri.
Rupee term loans 525,400,000 (i) First pari-passu charge by way of hypothecation over current assets (both present and future) of Helios Photo Voltaic Limited (formerly known as Moser Baer Photo Voltaic Limited (a subsidiary of the Company))
(ii) Personal guarantee of Mr. Deepak Puri.
Rupee term loans 120,000,000 (i) First pari-passu charge by way of hypothecation of the existing and future current assets of Helios Photo Voltaic Limited (formerly known as Moser Baer
Rupee term loans 130,000,000 Photo Voltaic Limited (a subsidiary of the Company) and second pari-passu charge on the fixed assets of Helios Photo Voltaic Limited (formerly known as Moser Baer Photo Voltaic Limited (a subsidiary of the Company)).
(ii) Personal guarantee of Mr. Deepak Puri.
Rupee term loans 346,663,000 First pari-passu charge by way of mortgage Repayable in -23 equal installments ofon the immovable properties of Moser Rs. 26,667,0001 installment of Rs. Baer Solar Limited (a subsidiary of the 26,659,000 (effective from AprilCompany) comprising of 21,000 square 2009). metres of land together with building and structures constructed/to be constructed with fixed plant and machinery.
Rupee term loans 59,139,900 First pari-passu charge by way of mortgage on Repayable in -23 equal installments of the immovable properties of Moser Baer Solar Rs. 4,930,0001 installment of Rs. Limited (a subsidiary of the Company) 26,659,000 (effective from Aprilcomprising of 21,000 square metres of land 2009). together with building and structures constructed/to be constructed with fixed plant and machinery.
Rupee term loans 308,833,331 First pari-passu charge on the immovable Repayable in 24 equal installments properties of Moser Baer Solar Limited (a effective from March 2008 after a subsidiary of the Company) at plot 66 B moratorium of 12 months.comprising of 21,000 square metres of land together with building and structures constructed/to be constructed with fixed plant and machinery.
Rupee term loans 407,618,651 First pari-passu charge on fixed assets and Repayable in 20 equal installments second pari-passu charge by way of effective from September 2013.hypothecation on current assets of the Moser Baer Solar Limited (a subsidiary of the Company).Further pari-passu charge by way of mortgageover plot 66 B Udyog Vihar admeasuring 21,000square metres situated in Greater Noida along with building structures thereon.
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
Particulars As at Nature of security Terms of repayment March 31, 2013
Rupee term loans 1,000,000,000 (i) First pari-passu charge by way of Repayable in 20 equal installmentshypothecation on all the present and future effective from December 2012 after a moveable fixed assets of Moser Baer Solar moratorium of 24 months.Limited (a subsidiary of the Company).
(ii) First pari-passu charge by way of mortgage over plot 66 B Udyog Vihar admeasuring 21,000 square metres situated in Greater Noida along with building structures thereon.
Rupee term loans 1,489,015,067 First charge by way of hypothecation of entire Repayable in 20 equal installments moveable fixed/block of assets of Moser Baer effective from September 2013 after a Solar Limited (a subsidiary of the Company) moratorium of 24 months.including plant and machinery, fittings and fixtures as installed therein. Import bills accompanied by bills of lading and other shipping documents.
Rupee term loans 106,000,000 First pari-passu charge over Moser Baer Solar Repayable in 20 equal installments Limited’s (a subsidiary of the Company) entire effective from September 2012 after a moveable fixed assets, both present and moratorium of 24 months. future. Fixed asset as per schedule III of hypothecation deed means: particularly moveable plant and machinery, equipments, furniture appliances, accessories whether or not installed.First pari-passu charge by way of mortgage over plot 66 B Udyog Vihar admeasuring 21,000 square metres situated in Greater Noida along with building structures thereon.
Working capital term 1,399,900,000 (i) First pari-passu charge on the fixed assets. Repayable in 16 quarterly installmentsloans (ii) Second pari-passu charge on current assets after moratorium of 2 years from cut
of the Company. off date i.e. November 30, 2011,(iii) Pledge of 100% shareholding of the commencing from February 2014.
promoters of the Company.(iv) Personal guarantee of Mr. Deepak Puri and
Mrs. Nita Puri.(v) Negative lien on land of Moser Baer
Infrastructure and Developer Limited (a subsidiary of the Company) at Chennai on pari-passu basis.
Funded interest 1,464,635,147 (vi) Corporate guarantee of Moser Baer Repayable in 7 quarterly installmentsterm loans Infrastructure and Developers Limited (a starting from September 30, 2013
subsidiary of the Company).(vii) Pledge of shares of Moser Baer Infrastructure
and Developers Limited (a subsidiary of the Company).
Working capital 3,866,697,476 First pari-passu charge by way of hypothecation Repayable in 32 unequal quarterly term loans on the fixed assets and second pari-passu installments from the end of
charge on the current assets. moratorium period i.e. March 31,2014.
Funded interest 819,549,844 Repayable in 20 unequal quarterly term loans installments from the end of
moratorium period i.e. March 31, 2014.
Total 22,599,927,492
Less: Current portion 2,770,221,516 of long-term debts
Net long-term borrowings 19,829,705,976
120 121
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
(ii) Nature of security and terms of repayment for secured borrowings (foreign currency loans):
Particulars As at As at Nature of security Terms of repaymentDecember 31, 2013 March 31, 2013
From banks
Foreign currency - 364,307,831 (i) First pari-passu charge by way of Repayable in 24 equalterm loans mortgage on entire fixed assets, installments of $516,592 each.
immovable properties plot 66 B Udyog Vihar, Greater Noida
Foreign currency term - 4,183,226 comprising of 21,000 sq mtr of Repayable in 24 equal quarterlyloans land together with building and installments of $5,931 each.
structures constructed/to be Foreign currency term 167,455,797 135,737,065 constructed with fixed plant and Repayable in 31 unequal loans machinery and hypothecation on installments from end of
movable fixed assets. moratorium period i.e. March(ii) Second pari-passu charge on 31, 2014.
entire current assets, both present and future, of the Company (subject to no objection certificate (NOC) from Bank of Baroda).
(iii)Personal guarantee of Mr. Deepak Puri and Mrs. Nita Puri.
(iv)Corporate guarantee of Moser Baer India Limited.
Foreign currency term 424,706,614 372,949,145 (i) First pari-passu charge by way Repayable in 20 equal loans of mortgage on the immovable installments of $ 490,639 each.
properties of the company comprising of 21,000 square metres of land together with building and structures constructed/to be constructed with fixed plant and machinery.
(ii) Corporate guarantee of Moser Baer India Limited
From others
Foreign currency term 1,082,025,000 950,162,500 (i) First pari-passu charge by way $1,000,000 each on May 15loans of mortgage (vide approval of 2010, November 15 2010, and
concerned land authority) on the May 15, 2011;$2,000,000 on immovable properties acquired November 15,on sublease form MBIL 2011;$2,500,000 on May 15,comprising of 19,736 square 2012;$3,000,000 on November metres of land at plot 66 B, 15, 2012;$4,000,000 each onUdyog Vihar, Greater Noida, May 15, 2013, November 15,Uttar Pradesh, together with all 2013 and May 15, 2014. buildings and structures thereon and all plant and machinery attached to the earth or permanently fastened by anything attached to the earth, both present and future.
(ii) Pari-passu charge by way of equitable mortgage of plot admeasuring 566.05 bighas along with superstructure thereon, situated at village Tinwari, District Jodhpur, Rajasthan (pending receipt of no objection certificate (NOC) from Jodhpur Land Authority).
(iii)Corporate guarantee of Moser Baer India Limited.
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
Particulars As at Nature of security Terms of repayment March 31, 2013
Rupee term loans 1,000,000,000 (i) First pari-passu charge by way of Repayable in 20 equal installmentshypothecation on all the present and future effective from December 2012 after a moveable fixed assets of Moser Baer Solar moratorium of 24 months.Limited (a subsidiary of the Company).
(ii) First pari-passu charge by way of mortgage over plot 66 B Udyog Vihar admeasuring 21,000 square metres situated in Greater Noida along with building structures thereon.
Rupee term loans 1,489,015,067 First charge by way of hypothecation of entire Repayable in 20 equal installments moveable fixed/block of assets of Moser Baer effective from September 2013 after a Solar Limited (a subsidiary of the Company) moratorium of 24 months.including plant and machinery, fittings and fixtures as installed therein. Import bills accompanied by bills of lading and other shipping documents.
Rupee term loans 106,000,000 First pari-passu charge over Moser Baer Solar Repayable in 20 equal installments Limited’s (a subsidiary of the Company) entire effective from September 2012 after a moveable fixed assets, both present and moratorium of 24 months. future. Fixed asset as per schedule III of hypothecation deed means: particularly moveable plant and machinery, equipments, furniture appliances, accessories whether or not installed.First pari-passu charge by way of mortgage over plot 66 B Udyog Vihar admeasuring 21,000 square metres situated in Greater Noida along with building structures thereon.
Working capital term 1,399,900,000 (i) First pari-passu charge on the fixed assets. Repayable in 16 quarterly installmentsloans (ii) Second pari-passu charge on current assets after moratorium of 2 years from cut
of the Company. off date i.e. November 30, 2011,(iii) Pledge of 100% shareholding of the commencing from February 2014.
promoters of the Company.(iv) Personal guarantee of Mr. Deepak Puri and
Mrs. Nita Puri.(v) Negative lien on land of Moser Baer
Infrastructure and Developer Limited (a subsidiary of the Company) at Chennai on pari-passu basis.
Funded interest 1,464,635,147 (vi) Corporate guarantee of Moser Baer Repayable in 7 quarterly installmentsterm loans Infrastructure and Developers Limited (a starting from September 30, 2013
subsidiary of the Company).(vii) Pledge of shares of Moser Baer Infrastructure
and Developers Limited (a subsidiary of the Company).
Working capital 3,866,697,476 First pari-passu charge by way of hypothecation Repayable in 32 unequal quarterly term loans on the fixed assets and second pari-passu installments from the end of
charge on the current assets. moratorium period i.e. March 31,2014.
Funded interest 819,549,844 Repayable in 20 unequal quarterly term loans installments from the end of
moratorium period i.e. March 31, 2014.
Total 22,599,927,492
Less: Current portion 2,770,221,516 of long-term debts
Net long-term borrowings 19,829,705,976
120 121
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
(ii) Nature of security and terms of repayment for secured borrowings (foreign currency loans):
Particulars As at As at Nature of security Terms of repaymentDecember 31, 2013 March 31, 2013
From banks
Foreign currency - 364,307,831 (i) First pari-passu charge by way of Repayable in 24 equalterm loans mortgage on entire fixed assets, installments of $516,592 each.
immovable properties plot 66 B Udyog Vihar, Greater Noida
Foreign currency term - 4,183,226 comprising of 21,000 sq mtr of Repayable in 24 equal quarterlyloans land together with building and installments of $5,931 each.
structures constructed/to be Foreign currency term 167,455,797 135,737,065 constructed with fixed plant and Repayable in 31 unequal loans machinery and hypothecation on installments from end of
movable fixed assets. moratorium period i.e. March(ii) Second pari-passu charge on 31, 2014.
entire current assets, both present and future, of the Company (subject to no objection certificate (NOC) from Bank of Baroda).
(iii)Personal guarantee of Mr. Deepak Puri and Mrs. Nita Puri.
(iv)Corporate guarantee of Moser Baer India Limited.
Foreign currency term 424,706,614 372,949,145 (i) First pari-passu charge by way Repayable in 20 equal loans of mortgage on the immovable installments of $ 490,639 each.
properties of the company comprising of 21,000 square metres of land together with building and structures constructed/to be constructed with fixed plant and machinery.
(ii) Corporate guarantee of Moser Baer India Limited
From others
Foreign currency term 1,082,025,000 950,162,500 (i) First pari-passu charge by way $1,000,000 each on May 15loans of mortgage (vide approval of 2010, November 15 2010, and
concerned land authority) on the May 15, 2011;$2,000,000 on immovable properties acquired November 15,on sublease form MBIL 2011;$2,500,000 on May 15,comprising of 19,736 square 2012;$3,000,000 on November metres of land at plot 66 B, 15, 2012;$4,000,000 each onUdyog Vihar, Greater Noida, May 15, 2013, November 15,Uttar Pradesh, together with all 2013 and May 15, 2014. buildings and structures thereon and all plant and machinery attached to the earth or permanently fastened by anything attached to the earth, both present and future.
(ii) Pari-passu charge by way of equitable mortgage of plot admeasuring 566.05 bighas along with superstructure thereon, situated at village Tinwari, District Jodhpur, Rajasthan (pending receipt of no objection certificate (NOC) from Jodhpur Land Authority).
(iii)Corporate guarantee of Moser Baer India Limited.
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
Particulars As at As at Nature of security Terms of repaymentDecember 31, 2013 March 31, 2013
Foreign currency term 832,024,761 131,458,955 (i) First pari-passu charge by way of Repayable in 31 unequal loans mortgage on entire fixed assets, installments from end of
immovable properties plot 66 B moratorium period i.e. MarchUdyog Vihar, Greater Noida 31, 2014.comprising of 21,000 square metres of land together with building and structures constructed/to be constructed with fixed plant and machinery.
Foreign currency term - 599,169,938 (ii) Second pari-passu charge on Repayable in 20 equalloans entire current assets, both installments of $551,773 each.
present and future, of the Company.
(iii)Personal gurarantee of Mr. Deepak Puri and Mrs. Nita Puri.
(iv)Corporate guarantee of Moser Baer India Limited.
Total 2,506,212,172 2,557,968,660
Less: Current portion of long-term debts 1,415,751,967 1,484,671,026
Net long-term borrowings 1,090,460,205 1,073,297,634
(iii) Interest rate on long-term borrowings varies from 10.25 to 15.25 % p.a. (previous year 10.25 to 15.25 % p.a.)
(iv) Details of default in repayment of loans and interest of Moser Baer India Limited and its subsidiaries namely - Helios Photo Voltaic Limited (formerly known as Moser Baer Photo Voltaic Limited) and Moser Baer Solar Limited are summarised below:
The details of continuing defaults of principal and interest in each case as at December 31, 2013 are as follows:
Particulars Due date Amount Period of default in days
Banks July 14, 2012 36,146,280 535
October 14, 2012 35,740,398 443
January 14, 2013 35,392,300 351
March 31, 2013 13,057,720 275
April 14, 2013 35,020,059 261
May 31, 2013 2,717,758 214
June 30, 2013 40,745,660 184
July 14, 2013 35,323,779 170
July 31, 2013 11,747,837 153
August 31, 2013 13,443,152 122
September 30, 2013 47,253,207 92
October 14, 2013 35,820,046 78
October 31, 2013 66,281,443 61
November 30, 2013 85,374,841 31
Financial institution May 15, 2012 161,921,539 595
November 15, 2012 193,874,263 411
March 31, 2013 185,491 275
April 30, 2013 1,258,371 245
May 15, 2013 255,842,572 230
May 31, 2013 1,560,150 214
June 30, 2013 2,843,718 184
July 31, 2013 4,625,358 153
August 31, 2013 4,625,358 122
September 30, 2013 4,476,154 92
October 31, 2013 4,742,574 61
November 15, 2013 263,055,179 46
November 30, 2013 5,954,404 31
122 123
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
(v) Corporate debt restructuring scheme
(a) In the previous year, the Group Company and one of the subsidiary company, Helios Photo Voltaic Limited (“HPVL”)
(formerly known as Moser Baer Photo Voltaic Limited) accounted for Corporate Debt Restructuring Scheme (hereafter
referred to as “the CDR Scheme”) (reclassifications and interest calculations) in the books for the year ended March 31,
2013. As per the CDR scheme, the Parent and HPVL recorded amounts receivable from banks on account of installment
paid prior to implementation of the scheme, excess interest paid by the parent and HPVL and release of additional limits
as per the scheme. As of December 31, 2013, a total of Rs. 855,841,627 in case of MBIL and Rs. 219,366,300 in case of
HPVL is outstanding to be received from banks. Recovery of this balance is subject to completion of reconciliation of
the CDR scheme adjustments with some of the lender banks. Based on acceptance of management’s calculation by
certain banks, the management is of the view there will not be any material adjustment to this receivable.
(b) Further, the Corporate Debt Restructuring (CDR) proposals to re-structure existing debt obligations, including interest,
additional fundings and other terms of another subsidiary Moser Baer Solar Limited (“MBSL”), having January 1, 2012
as the cut-off date, were approved by the CDR Cell vide its Letter of Approval (LOA) dated March 18, 2013.
Subsequently on execution of the Master Restructuring Agreement (MRA)/ other definitive documents (except for one
bank) by MBSL on March 28, 2013 and also upon fulfillment of necessary conditions precedent post March 31, 2013,
MBSL accounted for CDR scheme (reclassifications and interest calculations) in the financial statements for the period
ended December 31, 2013 (except for owings to one lender bank) as follows, which are subject to reconciliation and
approval by the lenders banks:
• The short-term borrowings comprising cash credit and other working capital limits amounting to Rs. 1,470,300,000
have been reclassified as Working Capital Long-Term Loan (WCTL) including current maturities of Rs. 54,761,250.
• The existing term loans of Rs. 5,513,423,810 has been classified as long-term borrowings including current maturities
of Rs. 456,406,078.
• The interest due w.e.f. January 1, 2012 till December 31, 2013 at revised rates amounting to Rs. 1,275,971,450 has
been converted into Funded Interest Term-Loan (FITL) including current maturities amounting to Rs. 48,600,000.
From the “cut- off date” of the Company, the interest on the restructured debts has been recomputed and provided at
the effective interest rates as per the package on the balances as appearing in the books of account pending
confirmations from various lenders. Accordingly, interest reversal of Rs. 331,510,604 pertaining to period from cut-off
date to March 31, 2013 has been shown as exceptional item during the period.
(c) The borrowers and the CDR lenders executed a MRA during the previous year. The MRA as well as the provisions of the
Master Circular on corporate debt restructuring issued by the Reserve Bank of India, give a right to the CDR lenders to get a
recompense of their waivers and sacrifices made as part of the CDR proposal. The recompense payable by the borrowers is
contingent on various factors including improved performance of the borrowers and many other conditions, the outcome of
which currently is materially uncertain and hence the proportionate amount payable as recompense has been treated as a
contingent liability. The aggregate present value of the sacrifice made/ to be made by CDR lenders as per the MRA is
approximately Rs. 399.39 crores for the Group.
10 Other long-term liabilities
Particulars As at As atDecember 31, 2013 March 31, 2013
Deferred government grant (refer note below) 35,000,000 35,000,000
Security deposits 12,605,250 12,595,250
Retention money 9,113,282 2,210,731
Lease equalisation reserve 44,535,208 37,647,449
VAT and CST payable 780,191 780,191
Total 102,033,931 88,233,621
Note:
Ministry of New and Renewable Energy of the Government of India, as part of its Jawaharlal Nehru Nation Solar Mission 2010 sanctioned a Research and Development (‘R&D’) grant to the Company for its project ‘Development of CIGS solar cell pilot plant to achieve grid parity solar cells’. One of the objectives of the grant is to develop low cost solar cell module with an aim to meet grid parity by using Cu(InGa)Se2 solar cells. During the FY 2010-11, the Company received R&D grant of Rs. 35,000,000 out of the total grant of Rs. 71,050,000 being 50 % of the total project equipment cost of Rs. 142,100,000. Pending acquisition of the equipment, the grant received has been disclosed in the financial statements as ‘Government Grant’ which shall be adjusted to the cost of specific fixed assets.
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
Particulars As at As at Nature of security Terms of repaymentDecember 31, 2013 March 31, 2013
Foreign currency term 832,024,761 131,458,955 (i) First pari-passu charge by way of Repayable in 31 unequal loans mortgage on entire fixed assets, installments from end of
immovable properties plot 66 B moratorium period i.e. MarchUdyog Vihar, Greater Noida 31, 2014.comprising of 21,000 square metres of land together with building and structures constructed/to be constructed with fixed plant and machinery.
Foreign currency term - 599,169,938 (ii) Second pari-passu charge on Repayable in 20 equalloans entire current assets, both installments of $551,773 each.
present and future, of the Company.
(iii)Personal gurarantee of Mr. Deepak Puri and Mrs. Nita Puri.
(iv)Corporate guarantee of Moser Baer India Limited.
Total 2,506,212,172 2,557,968,660
Less: Current portion of long-term debts 1,415,751,967 1,484,671,026
Net long-term borrowings 1,090,460,205 1,073,297,634
(iii) Interest rate on long-term borrowings varies from 10.25 to 15.25 % p.a. (previous year 10.25 to 15.25 % p.a.)
(iv) Details of default in repayment of loans and interest of Moser Baer India Limited and its subsidiaries namely - Helios Photo Voltaic Limited (formerly known as Moser Baer Photo Voltaic Limited) and Moser Baer Solar Limited are summarised below:
The details of continuing defaults of principal and interest in each case as at December 31, 2013 are as follows:
Particulars Due date Amount Period of default in days
Banks July 14, 2012 36,146,280 535
October 14, 2012 35,740,398 443
January 14, 2013 35,392,300 351
March 31, 2013 13,057,720 275
April 14, 2013 35,020,059 261
May 31, 2013 2,717,758 214
June 30, 2013 40,745,660 184
July 14, 2013 35,323,779 170
July 31, 2013 11,747,837 153
August 31, 2013 13,443,152 122
September 30, 2013 47,253,207 92
October 14, 2013 35,820,046 78
October 31, 2013 66,281,443 61
November 30, 2013 85,374,841 31
Financial institution May 15, 2012 161,921,539 595
November 15, 2012 193,874,263 411
March 31, 2013 185,491 275
April 30, 2013 1,258,371 245
May 15, 2013 255,842,572 230
May 31, 2013 1,560,150 214
June 30, 2013 2,843,718 184
July 31, 2013 4,625,358 153
August 31, 2013 4,625,358 122
September 30, 2013 4,476,154 92
October 31, 2013 4,742,574 61
November 15, 2013 263,055,179 46
November 30, 2013 5,954,404 31
122 123
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
(v) Corporate debt restructuring scheme
(a) In the previous year, the Group Company and one of the subsidiary company, Helios Photo Voltaic Limited (“HPVL”)
(formerly known as Moser Baer Photo Voltaic Limited) accounted for Corporate Debt Restructuring Scheme (hereafter
referred to as “the CDR Scheme”) (reclassifications and interest calculations) in the books for the year ended March 31,
2013. As per the CDR scheme, the Parent and HPVL recorded amounts receivable from banks on account of installment
paid prior to implementation of the scheme, excess interest paid by the parent and HPVL and release of additional limits
as per the scheme. As of December 31, 2013, a total of Rs. 855,841,627 in case of MBIL and Rs. 219,366,300 in case of
HPVL is outstanding to be received from banks. Recovery of this balance is subject to completion of reconciliation of
the CDR scheme adjustments with some of the lender banks. Based on acceptance of management’s calculation by
certain banks, the management is of the view there will not be any material adjustment to this receivable.
(b) Further, the Corporate Debt Restructuring (CDR) proposals to re-structure existing debt obligations, including interest,
additional fundings and other terms of another subsidiary Moser Baer Solar Limited (“MBSL”), having January 1, 2012
as the cut-off date, were approved by the CDR Cell vide its Letter of Approval (LOA) dated March 18, 2013.
Subsequently on execution of the Master Restructuring Agreement (MRA)/ other definitive documents (except for one
bank) by MBSL on March 28, 2013 and also upon fulfillment of necessary conditions precedent post March 31, 2013,
MBSL accounted for CDR scheme (reclassifications and interest calculations) in the financial statements for the period
ended December 31, 2013 (except for owings to one lender bank) as follows, which are subject to reconciliation and
approval by the lenders banks:
• The short-term borrowings comprising cash credit and other working capital limits amounting to Rs. 1,470,300,000
have been reclassified as Working Capital Long-Term Loan (WCTL) including current maturities of Rs. 54,761,250.
• The existing term loans of Rs. 5,513,423,810 has been classified as long-term borrowings including current maturities
of Rs. 456,406,078.
• The interest due w.e.f. January 1, 2012 till December 31, 2013 at revised rates amounting to Rs. 1,275,971,450 has
been converted into Funded Interest Term-Loan (FITL) including current maturities amounting to Rs. 48,600,000.
From the “cut- off date” of the Company, the interest on the restructured debts has been recomputed and provided at
the effective interest rates as per the package on the balances as appearing in the books of account pending
confirmations from various lenders. Accordingly, interest reversal of Rs. 331,510,604 pertaining to period from cut-off
date to March 31, 2013 has been shown as exceptional item during the period.
(c) The borrowers and the CDR lenders executed a MRA during the previous year. The MRA as well as the provisions of the
Master Circular on corporate debt restructuring issued by the Reserve Bank of India, give a right to the CDR lenders to get a
recompense of their waivers and sacrifices made as part of the CDR proposal. The recompense payable by the borrowers is
contingent on various factors including improved performance of the borrowers and many other conditions, the outcome of
which currently is materially uncertain and hence the proportionate amount payable as recompense has been treated as a
contingent liability. The aggregate present value of the sacrifice made/ to be made by CDR lenders as per the MRA is
approximately Rs. 399.39 crores for the Group.
10 Other long-term liabilities
Particulars As at As atDecember 31, 2013 March 31, 2013
Deferred government grant (refer note below) 35,000,000 35,000,000
Security deposits 12,605,250 12,595,250
Retention money 9,113,282 2,210,731
Lease equalisation reserve 44,535,208 37,647,449
VAT and CST payable 780,191 780,191
Total 102,033,931 88,233,621
Note:
Ministry of New and Renewable Energy of the Government of India, as part of its Jawaharlal Nehru Nation Solar Mission 2010 sanctioned a Research and Development (‘R&D’) grant to the Company for its project ‘Development of CIGS solar cell pilot plant to achieve grid parity solar cells’. One of the objectives of the grant is to develop low cost solar cell module with an aim to meet grid parity by using Cu(InGa)Se2 solar cells. During the FY 2010-11, the Company received R&D grant of Rs. 35,000,000 out of the total grant of Rs. 71,050,000 being 50 % of the total project equipment cost of Rs. 142,100,000. Pending acquisition of the equipment, the grant received has been disclosed in the financial statements as ‘Government Grant’ which shall be adjusted to the cost of specific fixed assets.
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
11 Long-term provisions
Particulars As at As atDecember 31, 2013 March 31, 2013
Provision for employee benefits
- Gratuity 181,858,592 172,589,480
- Compensated absences 86,815,210 94,427,191
- Key resource bonus and deferred salary 185,859 16,691,727
- Provision for pension for overseas subsidiary - 30,656,250
Others
- Provision for warranty (refer note below) 234,378,407 214,846,533
Total 503,238,068 529,211,181
Note:
The movement in provision for warranty from beginning to end of the reporting period is as follows:
Particulars Period ended Year ended December 31, 2013 March 31, 2013
Balance at the beginning of the period/ year 214,846,533 202,349,429
Add: Accruals during the period/ year 19,908,407 12,497,104
Less: Utilised/ written back during the period/ year (376,533) -
Balance at the end of the period/year 234,378,407 214,846,533
Warranty provision relate to the estimated outflow in respect of warranty for products sold by the subsidiaries. Due to very nature of such costs, it is not possible to estimate the timing/uncertainties relating to their outflows as well as expense from such estimates.
12 Short-term borrowings
Particulars As at As atDecember 31, 2013 March 31, 2013
Secured
(a) Short-term loans from banks
- Secured by hypothecation of existing and future current assets and further by way of second charge on fixed assets 486,419,732 11,943,827
- Secured by lien on fixed deposits from banks 613,800 46,005,052
(b) Working capital and cash credit facilities
- Working capital facilities 6,810,384,734 3,951,840,022
- Cash credit 1,555,342,204 5,431,717,420
Total 8,852,760,470 9,441,506,321
Notes:
Short-term borrowing outstanding as at December 31, 2013 to the extent of Rs. 6,810,427,520 are further secured by:
1. Pledge of 100% shareholding of the promoters of the Company.
2. Personal guarantee of Mr. Deepak Puri and Mrs. Nita Puri.
3. Negative lien on land of Moser Baer Infrastructure and Developers Limited (a subsidiary of the Company) at Chennai on pari-passu basis.
4. Corporate guarantee of Moser Baer Infrastructure and Developers Limited (subsidiary of the Company that owns the rights to the Chennai land).
5. Pledge of shares of Moser Baer Infrastructure and Developers Limited (a subsidiary of the Company).
124 125
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
13 Trade payables
Particulars As at As atDecember 31, 2013 March 31, 2013
Acceptances 854,745,146 1,002,591,556
Trade creditors
- Total outstanding dues of micro, small and medium enterprises 72,777,339 70,811,218
- Total outstanding dues of creditors other than micro, small and medium enterprises 1,178,109,252 1,519,654,696
Total 2,105,631,737 2,593,057,470
14 Other current liabilities
Particulars As at As atDecember 31, 2013 March 31, 2013
Current maturities of:
- Long-term debt (refer note 9) 4,320,860,370 4,254,892,542
- Foreign currency convertible bonds (refer note 47 (a)) 5,471,955,000 4,805,107,500
- Premium on redemption of foreign currency convertible bonds (refer note 47(c)) 2,032,527,592 1,784,830,756
Interest accrued but not due on borrowings 7,917,679 18,690,801
Interest accrued and due on borrowings 665,766,472 759,530,742
Income received in advance 191,199,630 75,558,867
Unpaid dividend 2,940,573 3,302,623
Amount received from banks under corporate debt restructuring scheme - 1,232,403,180
Others:
- Capital creditors 294,687,049 185,780,746
- Employee dues 156,753,511 233,540,168
- Security deposits 2,882,951 3,272,951
- Statutory dues 115,673,579 122,445,046
- Retention money 45,139,930 52,172,480
- Deferred payment liabilities 152,896,800 152,896,800
- Book overdraft 121,591,990 84,934,367
- Others payables 28,773,856 42,967,348
Total 13,611,566,982 13,812,326,917
15 Short-term provisions
Particulars As at As atDecember 31, 2013 March 31, 2013
Provision for employee benefits
- Gratuity 755,920 3,916,920
- Compensated absences 16,216,774 12,913,085
- Key resource bonus and deferred salary (refer note (i) below) 8,417,852 19,827,329
Others
- Provision for taxation 697,019 1,883,281
- Provision for warranty (refer note (ii) below) 24,615,067 23,784,300
- Provision for other probable obligations (refer note (iii) below) 439,212,610 412,503,835
- Provision for redemption of foreign currency convertible bonds (refer note 47(c)) 1,144,052,106 614,887,903
Total 1,633,967,348 1,089,716,653
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
11 Long-term provisions
Particulars As at As atDecember 31, 2013 March 31, 2013
Provision for employee benefits
- Gratuity 181,858,592 172,589,480
- Compensated absences 86,815,210 94,427,191
- Key resource bonus and deferred salary 185,859 16,691,727
- Provision for pension for overseas subsidiary - 30,656,250
Others
- Provision for warranty (refer note below) 234,378,407 214,846,533
Total 503,238,068 529,211,181
Note:
The movement in provision for warranty from beginning to end of the reporting period is as follows:
Particulars Period ended Year ended December 31, 2013 March 31, 2013
Balance at the beginning of the period/ year 214,846,533 202,349,429
Add: Accruals during the period/ year 19,908,407 12,497,104
Less: Utilised/ written back during the period/ year (376,533) -
Balance at the end of the period/year 234,378,407 214,846,533
Warranty provision relate to the estimated outflow in respect of warranty for products sold by the subsidiaries. Due to very nature of such costs, it is not possible to estimate the timing/uncertainties relating to their outflows as well as expense from such estimates.
12 Short-term borrowings
Particulars As at As atDecember 31, 2013 March 31, 2013
Secured
(a) Short-term loans from banks
- Secured by hypothecation of existing and future current assets and further by way of second charge on fixed assets 486,419,732 11,943,827
- Secured by lien on fixed deposits from banks 613,800 46,005,052
(b) Working capital and cash credit facilities
- Working capital facilities 6,810,384,734 3,951,840,022
- Cash credit 1,555,342,204 5,431,717,420
Total 8,852,760,470 9,441,506,321
Notes:
Short-term borrowing outstanding as at December 31, 2013 to the extent of Rs. 6,810,427,520 are further secured by:
1. Pledge of 100% shareholding of the promoters of the Company.
2. Personal guarantee of Mr. Deepak Puri and Mrs. Nita Puri.
3. Negative lien on land of Moser Baer Infrastructure and Developers Limited (a subsidiary of the Company) at Chennai on pari-passu basis.
4. Corporate guarantee of Moser Baer Infrastructure and Developers Limited (subsidiary of the Company that owns the rights to the Chennai land).
5. Pledge of shares of Moser Baer Infrastructure and Developers Limited (a subsidiary of the Company).
124 125
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
13 Trade payables
Particulars As at As atDecember 31, 2013 March 31, 2013
Acceptances 854,745,146 1,002,591,556
Trade creditors
- Total outstanding dues of micro, small and medium enterprises 72,777,339 70,811,218
- Total outstanding dues of creditors other than micro, small and medium enterprises 1,178,109,252 1,519,654,696
Total 2,105,631,737 2,593,057,470
14 Other current liabilities
Particulars As at As atDecember 31, 2013 March 31, 2013
Current maturities of:
- Long-term debt (refer note 9) 4,320,860,370 4,254,892,542
- Foreign currency convertible bonds (refer note 47 (a)) 5,471,955,000 4,805,107,500
- Premium on redemption of foreign currency convertible bonds (refer note 47(c)) 2,032,527,592 1,784,830,756
Interest accrued but not due on borrowings 7,917,679 18,690,801
Interest accrued and due on borrowings 665,766,472 759,530,742
Income received in advance 191,199,630 75,558,867
Unpaid dividend 2,940,573 3,302,623
Amount received from banks under corporate debt restructuring scheme - 1,232,403,180
Others:
- Capital creditors 294,687,049 185,780,746
- Employee dues 156,753,511 233,540,168
- Security deposits 2,882,951 3,272,951
- Statutory dues 115,673,579 122,445,046
- Retention money 45,139,930 52,172,480
- Deferred payment liabilities 152,896,800 152,896,800
- Book overdraft 121,591,990 84,934,367
- Others payables 28,773,856 42,967,348
Total 13,611,566,982 13,812,326,917
15 Short-term provisions
Particulars As at As atDecember 31, 2013 March 31, 2013
Provision for employee benefits
- Gratuity 755,920 3,916,920
- Compensated absences 16,216,774 12,913,085
- Key resource bonus and deferred salary (refer note (i) below) 8,417,852 19,827,329
Others
- Provision for taxation 697,019 1,883,281
- Provision for warranty (refer note (ii) below) 24,615,067 23,784,300
- Provision for other probable obligations (refer note (iii) below) 439,212,610 412,503,835
- Provision for redemption of foreign currency convertible bonds (refer note 47(c)) 1,144,052,106 614,887,903
Total 1,633,967,348 1,089,716,653
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
The following is the movement in provisions from beginning to the end of the reporting period:
(i) Provision for key resource bonus and deferred salary
Particulars Period ended Year endedDecember 31, 2013 March 31, 2013
Balance at the beginning of the period/year 36,519,056 61,832,576
Add: Accruals for the period/ year 20,924,050 26,998,821
Less: Provisions utilised/written back during the period/ year 48,839,395 52,312,341
Balance at the end of the period/year 8,603,711 36,519,056
Disclosed under long-term provisions (refer note 11) 185,859 16,691,727
Disclosed under short-term provisions (refer note 15) 8,417,852 19,827,329
8,603,711 36,519,056
(ii) Warranty
Particulars Period ended Year endedDecember 31, 2013 March 31, 2013
Balance at the beginning of the period/ year 23,784,301 5,847,477
Add: Accruals for the period/ year 2,247,485 22,585,729
Less: Provisions utilised/written back during the period/ year (1,416,719) (4,648,905)
Balance at the end of the period/year 24,615,067 23,784,301
Warranty provision relate to the estimated outflow in respect of warranty for products sold by the Company. Due to the nature of such costs, it is not possible to estimate the timing/uncertainties relating to their outflows as well as expense from such estimates
(iii) Other probable obligations
Particulars Period ended Year endedDecember 31, 2013 March 31, 2013
Balance at the beginning of the period/ year 412,503,835 377,054,006
Add: Accruals for the period/ year 26,708,775 35,449,829
Less: Provisions utilised/written back during the period/ year - -
Balance at the end of the period/ year 439,212,610 412,503,835
Probable obligations provision relates to the estimated outflow in respect of possible liabilities expected to arise in future. As per notification no. 22/2006 of Central Excise, the Company has to pay additional custom duty on its local sales, if the goods sold are exempted from payment of sales tax or value added tax. One of the units of the Company is exempt from payment of local sales tax and hence the department has disputed the same and demanded the duty on the sale of such goods. The Company has recorded the liability for the amount demanded and is accruing the interest on the same quarterly. Due to very nature of such costs, it is not possible to estimate the timing / uncertainties relating to their outflows as well as expense from such estimates, hence considered as short-term in nature.
126 127
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12
2,0
62,1
47,6
19
26,8
87,5
80
40,0
93,2
09,3
51
9,6
72,3
80
1,1
33,8
32,5
74
1,1
43,5
04,9
54
14,6
00,2
24,5
36
17,4
82,7
29,6
56
Fu
rnit
ure
an
d f
ixtu
res
202,4
84,8
27
102,8
95
995,1
63
201,5
92,5
59
106,5
48,8
80
8,3
04,6
97
893,2
57
113,9
60,3
20
261,3
45
847,8
30
1,1
09,1
75
86,5
23,0
64
95,6
74,6
02
Off
ice e
qu
ipm
en
ts
125,7
84,6
89
3,1
93,4
27
107,8
84
128,8
70,2
32
52,9
52,2
94
4,2
51,5
80
107,8
84
57,0
95,9
90
810,1
78
1,0
86,1
22
1,8
96,3
00
69,8
77,9
42
72,0
22,2
17
Co
mp
ute
rs240,8
17,1
89
4,0
05,9
48
419,3
00
244,4
03,8
37
203,4
02,9
18
13,0
50,6
63
419,3
00
216,0
34,2
81
69,3
87
145,0
91
214,4
78
28,1
55,0
78
37,3
44,8
84
Veh
icle
s24,0
88,8
44
--
24,0
88,8
44
15,5
64,0
55
1,4
46,7
98
-17,0
10,8
53
-42,5
54
42,5
54
7,0
35,4
37
8,5
24,7
89
Su
b t
ota
l61,6
00,4
70,6
59
331,1
22,8
23
42,8
51,4
52
61,8
88,7
42,0
30
39,7
76,7
40,7
55
2,2
15,5
56,1
01
31,3
72,3
85
41,9
60,9
24,4
71
10,8
13,2
90
1,1
37,9
44,0
51
1,1
48,7
57,3
41
18,7
79,0
60,2
18
21,8
12,9
16,6
14
Pre
vio
us y
ear
(61,3
57,2
31,6
98)
(299,9
81,6
48)
(56,7
42,6
87)
(61,6
00,4
70,6
59)
(36,0
31,2
37,3
61)
(3,7
87,7
13,4
98)
(42,2
10,1
04)
(39,7
76,7
40,7
55)
(10,8
13,2
90)
-(1
0,8
13,2
90)
(21,8
12,9
16,6
14)
Inta
ng
ible
ass
ets
Co
mp
ute
r so
ftw
are
112,1
51,0
38
6,6
54,0
83
6,2
00
118,7
98,9
21
89,0
35,0
15
11,0
80,6
99
20,1
19
100,0
95,5
95
-815,9
49
815,9
49
17,8
87,3
77
23,1
16,0
23
Co
pyr
igh
ts,
an
d p
ate
nts
an
d o
ther
inte
llectu
al
pro
pert
y ri
gh
ts,
serv
ices
an
d o
pera
tin
g r
igh
ts3,4
37,8
82,3
70
943,8
19
-3,4
38,8
26,1
89
2,7
37,6
21,5
57
194,8
21,9
99
-2,9
32,4
43,5
56
44,6
23,3
58
-44,6
23,3
58
461,7
59,2
75
655,6
37,4
55
Go
od
will
on
co
nso
lidati
on
743,1
69,4
73
--
743,1
69,4
73
--
--
-81,6
77,4
37
81,6
77,4
37
661,4
92,0
36
743,1
69,4
73
Su
b t
ota
l4,2
93,2
02,8
81
7,5
97,9
02
6,2
00
4,3
00,7
94,5
83
2,8
26,6
56,5
72
205,9
02,6
98
20,1
19
3,0
32,5
39,1
51
44,6
23,3
58
82,4
93,3
86
127,1
16,7
44
1,1
41,1
38,6
88
1,4
21,9
22,9
51
Pre
vio
us y
ear
(4,1
44,3
18,5
36)
(153,1
96,2
75)
(4,3
11,9
30)
(4,2
93,2
02,8
81)
(2,5
30,3
03,1
63)
(299,1
19,7
25)
(2,7
66,3
16)
(2,8
26,6
56,5
72)
(44,6
23,3
58)
-(4
4,6
23,3
58)
(1,4
21,9
22,9
51)
No
tes:
1.
Ad
dit
ion
s t
o p
lan
t an
d m
ach
inery
in
clu
de e
xch
an
ge lo
ss o
f R
s. 200,5
77,6
45 (p
revi
ou
s y
ear
exc
han
ge lo
ss o
f R
s. 212,4
28,7
50).
2.
Gro
ss b
lock
of
fixe
d a
ssets
in
clu
de R
s. 4,2
72,9
12,6
38 (p
revi
ou
s y
ear
Rs. 4,2
72,9
12,6
38) re
lati
ng
to
th
e S
EZ d
ivis
ion
of
the C
om
pan
y.
Accu
mu
late
d Im
pair
men
t
MO
SE
R B
AE
R IN
DIA
LIM
ITE
DS
um
mary
of s
ign
ific
an
t acco
un
tin
g p
olic
ies
an
d o
ther exp
lan
ato
ry in
form
ati
on
s to
the c
on
solid
ate
d fi
nan
cia
l sta
tem
en
ts
for th
e n
ine m
on
ths
peri
od
en
ded
Decem
ber 31, 2
013
(All
am
ou
nts
in ru
pe
es
un
less
oth
erw
ise
sta
ted
)
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
The following is the movement in provisions from beginning to the end of the reporting period:
(i) Provision for key resource bonus and deferred salary
Particulars Period ended Year endedDecember 31, 2013 March 31, 2013
Balance at the beginning of the period/year 36,519,056 61,832,576
Add: Accruals for the period/ year 20,924,050 26,998,821
Less: Provisions utilised/written back during the period/ year 48,839,395 52,312,341
Balance at the end of the period/year 8,603,711 36,519,056
Disclosed under long-term provisions (refer note 11) 185,859 16,691,727
Disclosed under short-term provisions (refer note 15) 8,417,852 19,827,329
8,603,711 36,519,056
(ii) Warranty
Particulars Period ended Year endedDecember 31, 2013 March 31, 2013
Balance at the beginning of the period/ year 23,784,301 5,847,477
Add: Accruals for the period/ year 2,247,485 22,585,729
Less: Provisions utilised/written back during the period/ year (1,416,719) (4,648,905)
Balance at the end of the period/year 24,615,067 23,784,301
Warranty provision relate to the estimated outflow in respect of warranty for products sold by the Company. Due to the nature of such costs, it is not possible to estimate the timing/uncertainties relating to their outflows as well as expense from such estimates
(iii) Other probable obligations
Particulars Period ended Year endedDecember 31, 2013 March 31, 2013
Balance at the beginning of the period/ year 412,503,835 377,054,006
Add: Accruals for the period/ year 26,708,775 35,449,829
Less: Provisions utilised/written back during the period/ year - -
Balance at the end of the period/ year 439,212,610 412,503,835
Probable obligations provision relates to the estimated outflow in respect of possible liabilities expected to arise in future. As per notification no. 22/2006 of Central Excise, the Company has to pay additional custom duty on its local sales, if the goods sold are exempted from payment of sales tax or value added tax. One of the units of the Company is exempt from payment of local sales tax and hence the department has disputed the same and demanded the duty on the sale of such goods. The Company has recorded the liability for the amount demanded and is accruing the interest on the same quarterly. Due to very nature of such costs, it is not possible to estimate the timing / uncertainties relating to their outflows as well as expense from such estimates, hence considered as short-term in nature.
126 127
16
Fix
ed
ass
ets
Part
icu
lars
G
ross
blo
ck
A
ccu
mu
late
d d
ep
recia
tio
n a
nd
am
ort
isati
on
N
et
blo
ck
Bala
nce a
s at
Ad
dit
ion
sD
ele
tio
ns
Bala
nce a
s at
Bala
nce a
s at
Ch
arg
e f
or
Ad
just
men
t B
ala
nce a
s at
Bala
nce a
s at
Ch
arg
es
for
Bala
nce a
s at
Bala
nce a
s at
Bala
nce a
s at
Ap
ril 1,
2013
Dece
mb
er
31,
Ap
ril 1, 2013
th
e p
eri
od
up
on
dele
tio
ns
Dece
mb
er
31,
Ap
ril 1, 2013
the p
eri
od
D
ecem
ber
31,
Decem
ber
31,
Marc
h 3
1, 2013
2013
2013
2013
2013
Tan
gib
le a
ssets
Leaseh
old
lan
d581,7
97,9
58
--
581,7
97,9
58
44,7
97,4
04
4,6
04,0
19
-49,4
01,4
23
--
-532,3
96,5
35
537,0
00,5
54
Bu
ildin
g4,8
26,1
37,2
31
--
4,8
26,1
37,2
31
1,2
60,3
08,5
49
120,9
36,9
47
-1,3
81,2
45,4
96
--
-3,4
44,8
91,7
35
3,5
65,8
28,6
82
Leaseh
old
im
pro
vem
en
ts49,0
08,5
73
-4,0
96,0
45
44,9
12,5
28
35,2
17,3
43
813,7
78
3,0
64,3
64
32,9
66,7
57
-1,9
89,8
80
1,9
89,8
80
9,9
55,8
91
13,7
91,2
30
Pla
nt
an
d e
qu
ipm
en
ts55,5
50,3
51,3
48
323,8
20,5
53
37,2
33,0
60
55,8
36,9
38,8
41
38,0
57,9
49,3
12
2,0
62,1
47,6
19
26,8
87,5
80
40,0
93,2
09,3
51
9,6
72,3
80
1,1
33,8
32,5
74
1,1
43,5
04,9
54
14,6
00,2
24,5
36
17,4
82,7
29,6
56
Fu
rnit
ure
an
d f
ixtu
res
202,4
84,8
27
102,8
95
995,1
63
201,5
92,5
59
106,5
48,8
80
8,3
04,6
97
893,2
57
113,9
60,3
20
261,3
45
847,8
30
1,1
09,1
75
86,5
23,0
64
95,6
74,6
02
Off
ice e
qu
ipm
en
ts
125,7
84,6
89
3,1
93,4
27
107,8
84
128,8
70,2
32
52,9
52,2
94
4,2
51,5
80
107,8
84
57,0
95,9
90
810,1
78
1,0
86,1
22
1,8
96,3
00
69,8
77,9
42
72,0
22,2
17
Co
mp
ute
rs240,8
17,1
89
4,0
05,9
48
419,3
00
244,4
03,8
37
203,4
02,9
18
13,0
50,6
63
419,3
00
216,0
34,2
81
69,3
87
145,0
91
214,4
78
28,1
55,0
78
37,3
44,8
84
Veh
icle
s24,0
88,8
44
--
24,0
88,8
44
15,5
64,0
55
1,4
46,7
98
-17,0
10,8
53
-42,5
54
42,5
54
7,0
35,4
37
8,5
24,7
89
Su
b t
ota
l61,6
00,4
70,6
59
331,1
22,8
23
42,8
51,4
52
61,8
88,7
42,0
30
39,7
76,7
40,7
55
2,2
15,5
56,1
01
31,3
72,3
85
41,9
60,9
24,4
71
10,8
13,2
90
1,1
37,9
44,0
51
1,1
48,7
57,3
41
18,7
79,0
60,2
18
21,8
12,9
16,6
14
Pre
vio
us y
ear
(61,3
57,2
31,6
98)
(299,9
81,6
48)
(56,7
42,6
87)
(61,6
00,4
70,6
59)
(36,0
31,2
37,3
61)
(3,7
87,7
13,4
98)
(42,2
10,1
04)
(39,7
76,7
40,7
55)
(10,8
13,2
90)
-(1
0,8
13,2
90)
(21,8
12,9
16,6
14)
Inta
ng
ible
ass
ets
Co
mp
ute
r so
ftw
are
112,1
51,0
38
6,6
54,0
83
6,2
00
118,7
98,9
21
89,0
35,0
15
11,0
80,6
99
20,1
19
100,0
95,5
95
-815,9
49
815,9
49
17,8
87,3
77
23,1
16,0
23
Co
pyr
igh
ts,
an
d p
ate
nts
an
d o
ther
inte
llectu
al
pro
pert
y ri
gh
ts,
serv
ices
an
d o
pera
tin
g r
igh
ts3,4
37,8
82,3
70
943,8
19
-3,4
38,8
26,1
89
2,7
37,6
21,5
57
194,8
21,9
99
-2,9
32,4
43,5
56
44,6
23,3
58
-44,6
23,3
58
461,7
59,2
75
655,6
37,4
55
Go
od
will
on
co
nso
lidati
on
743,1
69,4
73
--
743,1
69,4
73
--
--
-81,6
77,4
37
81,6
77,4
37
661,4
92,0
36
743,1
69,4
73
Su
b t
ota
l4,2
93,2
02,8
81
7,5
97,9
02
6,2
00
4,3
00,7
94,5
83
2,8
26,6
56,5
72
205,9
02,6
98
20,1
19
3,0
32,5
39,1
51
44,6
23,3
58
82,4
93,3
86
127,1
16,7
44
1,1
41,1
38,6
88
1,4
21,9
22,9
51
Pre
vio
us y
ear
(4,1
44,3
18,5
36)
(153,1
96,2
75)
(4,3
11,9
30)
(4,2
93,2
02,8
81)
(2,5
30,3
03,1
63)
(299,1
19,7
25)
(2,7
66,3
16)
(2,8
26,6
56,5
72)
(44,6
23,3
58)
-(4
4,6
23,3
58)
(1,4
21,9
22,9
51)
No
tes:
1.
Ad
dit
ion
s t
o p
lan
t an
d m
ach
inery
in
clu
de e
xch
an
ge lo
ss o
f R
s. 200,5
77,6
45 (p
revi
ou
s y
ear
exc
han
ge lo
ss o
f R
s. 212,4
28,7
50).
2.
Gro
ss b
lock
of
fixe
d a
ssets
in
clu
de R
s. 4,2
72,9
12,6
38 (p
revi
ou
s y
ear
Rs. 4,2
72,9
12,6
38) re
lati
ng
to
th
e S
EZ d
ivis
ion
of
the C
om
pan
y.
Accu
mu
late
d Im
pair
men
t
MO
SE
R B
AE
R IN
DIA
LIM
ITE
DS
um
mary
of s
ign
ific
an
t acco
un
tin
g p
olic
ies
an
d o
ther exp
lan
ato
ry in
form
ati
on
s to
the c
on
solid
ate
d fi
nan
cia
l sta
tem
en
ts
for th
e n
ine m
on
ths
peri
od
en
ded
Decem
ber 31, 2
013
(All
am
ou
nts
in ru
pe
es
un
less
oth
erw
ise
sta
ted
)
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
17 Non current investments
Particulars As at As atDecember 31, 2013 March 31, 2013
Trade investments
(a) Investment in equity instruments 575,525,316 575,525,316
(b) Investment in preference shares 1,381,978,077 1,381,978,077
1,957,503,393 1,957,503,393
Less: Provision for diminution in the value of investments (1,949,428,442) (1,949,428,442)
Total 8,074,951 8,074,951
Details of trade investments (valued at cost)
Particulars As at December 31, 2013 As at March 31, 2013
(a) Investment in unquoted equity instruments
Investment in associates:
Moser Baer Infrastructure Limited
3,430,000 (previous year 3,430,000) equity shares of Rs. 10 each 34,300,000 34,300,000Less: Provision for diminution in the value of investment (34,300,000) - (34,300,000) -
Global Data Media FZ-LLC
7,194 (previous year 7,194) equity shares of AED 1000 each 92,532,185 92,532,185Less: Provision for diminution in the value of investment (92,532,185) - (92,532,185) -
Others:
Moser Baer Projects Private Limited 5,100,000 5,100,000
510,000 (previous year 510,000) equity shares of Rs. 10 each
Lumen Engineering Private Limited 1,020,000 1,020,000
102,000 (previous year 102,000) equity shares of Rs. 10 each
CAPCO Luxemburg S.A.R.L
1 (previous year 1) equity share of Euro 125 each 4,961 4,961
Bensimon Limited
20 (previous year 20) equity shares of Euro 1 each 1,382 1,382
KMG Digital Limited
196 (previous year 196) class A ordinary shares of Euro 1 each 1,320,264 1,320,264
Solaria Corporation
7,779,117 (previous year 7,779,117) common stock of USD 0.001 each 395,247,847 395,247,847
Less: Provision for diminution in the value of investment (395,247,847) - (395,247,847) -
Solaria Corporation
815,092 (previous year 815,092) Class B common stock of USD 0.001 each 45,998,677 45,998,677
Less: Provision for diminution in the value of investment (45,998,677) - (45,998,677) -
Total (A) 7,446,607 7,446,607
128 129
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
Particulars As at December 31, 2013 As at March 31, 2013
(b) Investments in unquoted preferred stock
CAPCO Luxemburg S.A.R.L
63,366 (previous year 63,366) preferred equity certificates of Euro 125 each 320,668,823 320,668,823
Less: Provision for diminution in the value of investment (320,668,823) - (320,668,823) -
Stion Corporation
1,000,000 (previous year 1,000,000) shares of series A preferred stock of USD 0.0001 each 45,302,150 45,302,150
Stion Corporation
82,912 (previous year 82,912) shares of series B-2 preferred stock of USD 0.0001 each 7,693,234 7,693,234
Stion Corporation
82,912 (previous year 82,912) shares of series B-1 preferred stock of USD 0.0001 each 12,241,163 12,241,163
65,236,547 65,236,547
Less: Provision for diminution in the value of investment (65,236,547) - (65,236,547) -
Solfocus Inc
7,000,000 (previous year 7,000,000) shares of series A preferred stock of USD 0.0001 each 327,047,185 327,047,185
Less: Provision for diminution in the value of investment (327,047,185) - (327,047,185) -
Solfocus Inc
4,950,495 (previous year 4,950,495) shares of series B preferred stock of USD 0.0001 each 410,660,000 410,660,000
Less: Provision for diminution in the value of investment (410,660,000) - (410,660,000) -
Solfocus Inc
7,000,000 (previous year 7,000,000) shares of series A preferred stock of USD 0.0001 each 327,047,185 327,047,185
Less: Exchange fluctuation arising on consolidation - -
Less: Provision for diminution in the value of investment (327,047,185) - (327,047,185) -
Solfocus Inc
4,950,495 (previous year 4,950,495) shares of series B preferred stock of USD 0.0001 each 410,660,000 410,660,000
Less: Provision for diminution in the value of investment (410,660,000) - (410,660,000) -
Solfocus Inc
2,178,649 (previous year 2,178,649) shares of series C preferred stock of USD 0.0001 each 245,340,000 245,340,000
Less: Provision for diminution in the value of investment (245,340,000) - (245,340,000) -
Skyline Solar Inc.
482,250 (previous year 482,250) shares of series A preferred stock of USD 0.5384 each 13,025,522 13,025,522
Less: Provision for diminution in the value of investment (12,397,178) 628,344 (12,397,178) 628,344
Total (B) 628,344 628,344
Total (A+B) 8,074,951 8,074,951
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
17 Non current investments
Particulars As at As atDecember 31, 2013 March 31, 2013
Trade investments
(a) Investment in equity instruments 575,525,316 575,525,316
(b) Investment in preference shares 1,381,978,077 1,381,978,077
1,957,503,393 1,957,503,393
Less: Provision for diminution in the value of investments (1,949,428,442) (1,949,428,442)
Total 8,074,951 8,074,951
Details of trade investments (valued at cost)
Particulars As at December 31, 2013 As at March 31, 2013
(a) Investment in unquoted equity instruments
Investment in associates:
Moser Baer Infrastructure Limited
3,430,000 (previous year 3,430,000) equity shares of Rs. 10 each 34,300,000 34,300,000Less: Provision for diminution in the value of investment (34,300,000) - (34,300,000) -
Global Data Media FZ-LLC
7,194 (previous year 7,194) equity shares of AED 1000 each 92,532,185 92,532,185Less: Provision for diminution in the value of investment (92,532,185) - (92,532,185) -
Others:
Moser Baer Projects Private Limited 5,100,000 5,100,000
510,000 (previous year 510,000) equity shares of Rs. 10 each
Lumen Engineering Private Limited 1,020,000 1,020,000
102,000 (previous year 102,000) equity shares of Rs. 10 each
CAPCO Luxemburg S.A.R.L
1 (previous year 1) equity share of Euro 125 each 4,961 4,961
Bensimon Limited
20 (previous year 20) equity shares of Euro 1 each 1,382 1,382
KMG Digital Limited
196 (previous year 196) class A ordinary shares of Euro 1 each 1,320,264 1,320,264
Solaria Corporation
7,779,117 (previous year 7,779,117) common stock of USD 0.001 each 395,247,847 395,247,847
Less: Provision for diminution in the value of investment (395,247,847) - (395,247,847) -
Solaria Corporation
815,092 (previous year 815,092) Class B common stock of USD 0.001 each 45,998,677 45,998,677
Less: Provision for diminution in the value of investment (45,998,677) - (45,998,677) -
Total (A) 7,446,607 7,446,607
128 129
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
Particulars As at December 31, 2013 As at March 31, 2013
(b) Investments in unquoted preferred stock
CAPCO Luxemburg S.A.R.L
63,366 (previous year 63,366) preferred equity certificates of Euro 125 each 320,668,823 320,668,823
Less: Provision for diminution in the value of investment (320,668,823) - (320,668,823) -
Stion Corporation
1,000,000 (previous year 1,000,000) shares of series A preferred stock of USD 0.0001 each 45,302,150 45,302,150
Stion Corporation
82,912 (previous year 82,912) shares of series B-2 preferred stock of USD 0.0001 each 7,693,234 7,693,234
Stion Corporation
82,912 (previous year 82,912) shares of series B-1 preferred stock of USD 0.0001 each 12,241,163 12,241,163
65,236,547 65,236,547
Less: Provision for diminution in the value of investment (65,236,547) - (65,236,547) -
Solfocus Inc
7,000,000 (previous year 7,000,000) shares of series A preferred stock of USD 0.0001 each 327,047,185 327,047,185
Less: Provision for diminution in the value of investment (327,047,185) - (327,047,185) -
Solfocus Inc
4,950,495 (previous year 4,950,495) shares of series B preferred stock of USD 0.0001 each 410,660,000 410,660,000
Less: Provision for diminution in the value of investment (410,660,000) - (410,660,000) -
Solfocus Inc
7,000,000 (previous year 7,000,000) shares of series A preferred stock of USD 0.0001 each 327,047,185 327,047,185
Less: Exchange fluctuation arising on consolidation - -
Less: Provision for diminution in the value of investment (327,047,185) - (327,047,185) -
Solfocus Inc
4,950,495 (previous year 4,950,495) shares of series B preferred stock of USD 0.0001 each 410,660,000 410,660,000
Less: Provision for diminution in the value of investment (410,660,000) - (410,660,000) -
Solfocus Inc
2,178,649 (previous year 2,178,649) shares of series C preferred stock of USD 0.0001 each 245,340,000 245,340,000
Less: Provision for diminution in the value of investment (245,340,000) - (245,340,000) -
Skyline Solar Inc.
482,250 (previous year 482,250) shares of series A preferred stock of USD 0.5384 each 13,025,522 13,025,522
Less: Provision for diminution in the value of investment (12,397,178) 628,344 (12,397,178) 628,344
Total (B) 628,344 628,344
Total (A+B) 8,074,951 8,074,951
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
18 Long term loans and advances
Particulars As at As at December 31, 2013 March 31, 2013
Capital advances
- unsecured considered good 129,221,430 122,420,032
- unsecured considered doubtful 62,601,559 61,396,260
Less: Allowance for doubtful advances (62,601,559) (61,396,260)
129,221,430 122,420,032
Advance to suppliers (refer note 37(b)) - 1,509,764,110
Security deposits 105,622,436 103,715,509
Prepaid expenses 428,180 1,028,600
Prepaid taxes 108,177,669 176,784,872
Loans to others 101,560,931 81,460,752
Balance with government authorities 129,522,404 145,414,421
Others
- unsecured considered good 7,308,563 7,412,721
- unsecured considered doubtful 1,631,509 1,399,509
Less: Allowance for doubtful advances (1,631,509) (1,399,509)
7,308,563 7,412,721
Total 581,841,613 2,148,001,017
19 Other non-current assets
Particulars As at As at December 31, 2013 March 31, 2013
Long-term trade receivables
- Unsecured and considered good 15,952,563 14,137,852
Fixed deposits under lien 174,832,015 68,922,155
Lease equalisation account 39,236,400 35,974,260
Total 230,020,978 119,034,267
20 Inventories
Particulars As at As atDecember 31, 2013 March 31, 2013
Raw materials and components 659,749,555 977,260,238
Goods-in-transit 122,260,284 114,762,444
Work-in-progress 2,133,713,469 2,112,003,374
Finished goods 1,946,921,044 1,649,226,621
Stock-in-trade 26,560,847 158,442,101
Goods-in-transit 26,348,586 160,582
Stores and spares 1,000,695,670 1,068,662,393
Goods-in-transit 322,590 4,333,484
Loose tools 5,663,928 5,747,953
Others
Packing material 122,719,138 140,074,839
Goods-in-transit 48,360,347 26,898,691
Film under production - 27,954,978
Rights of films 6,275,644 53,454,246
Total 6,099,591,102 6,338,981,944
130 131
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
21 Trade receivables
Particulars As at As at December 31, 2013 March 31, 2013
Trade receivables outstanding for a period exceeding six months from the date they are due for payment
Secured, considered good 17,283,431 13,929,199
Unsecured, considered good 1,946,949,225 861,585,473
Unsecured, considered doubtful 248,047,392 375,116,388
Less: Provision for doubtful debts (248,047,392) (375,116,388)
1,964,232,656 875,514,672
Other debts
Secured, considered good - 153,804,439
Unsecured, considered good 539,837,045 1,484,196,938
539,837,045 1,638,001,377
Total 2,504,069,701 2,513,516,049
22 Cash and bank balances
Particulars As at As atDecember 31, 2013 March 31, 2013
Cash and cash equivalents
Cheques and drafts on hand 3,958,743 138,741,122
Cash on hand 2,412,007 3,609,006
Money in transit 1,131,582 46,186,520
Bank balances in:
- Current accounts 311,417,228 624,327,824
Deposits with less than 3 months maturity 80,203,280 87,337,059
399,122,840 900,201,531
Other bank balances
Unpaid dividend accounts 2,940,574 3,302,624
Bank deposits with more than 3 months but less than 12 months maturity 39,660,093 401,265,418
Margin money 655,012,544 462,526,010
697,613,211 867,094,052
Total 1,096,736,051 1,767,295,583
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
18 Long term loans and advances
Particulars As at As at December 31, 2013 March 31, 2013
Capital advances
- unsecured considered good 129,221,430 122,420,032
- unsecured considered doubtful 62,601,559 61,396,260
Less: Allowance for doubtful advances (62,601,559) (61,396,260)
129,221,430 122,420,032
Advance to suppliers (refer note 37(b)) - 1,509,764,110
Security deposits 105,622,436 103,715,509
Prepaid expenses 428,180 1,028,600
Prepaid taxes 108,177,669 176,784,872
Loans to others 101,560,931 81,460,752
Balance with government authorities 129,522,404 145,414,421
Others
- unsecured considered good 7,308,563 7,412,721
- unsecured considered doubtful 1,631,509 1,399,509
Less: Allowance for doubtful advances (1,631,509) (1,399,509)
7,308,563 7,412,721
Total 581,841,613 2,148,001,017
19 Other non-current assets
Particulars As at As at December 31, 2013 March 31, 2013
Long-term trade receivables
- Unsecured and considered good 15,952,563 14,137,852
Fixed deposits under lien 174,832,015 68,922,155
Lease equalisation account 39,236,400 35,974,260
Total 230,020,978 119,034,267
20 Inventories
Particulars As at As atDecember 31, 2013 March 31, 2013
Raw materials and components 659,749,555 977,260,238
Goods-in-transit 122,260,284 114,762,444
Work-in-progress 2,133,713,469 2,112,003,374
Finished goods 1,946,921,044 1,649,226,621
Stock-in-trade 26,560,847 158,442,101
Goods-in-transit 26,348,586 160,582
Stores and spares 1,000,695,670 1,068,662,393
Goods-in-transit 322,590 4,333,484
Loose tools 5,663,928 5,747,953
Others
Packing material 122,719,138 140,074,839
Goods-in-transit 48,360,347 26,898,691
Film under production - 27,954,978
Rights of films 6,275,644 53,454,246
Total 6,099,591,102 6,338,981,944
130 131
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
21 Trade receivables
Particulars As at As at December 31, 2013 March 31, 2013
Trade receivables outstanding for a period exceeding six months from the date they are due for payment
Secured, considered good 17,283,431 13,929,199
Unsecured, considered good 1,946,949,225 861,585,473
Unsecured, considered doubtful 248,047,392 375,116,388
Less: Provision for doubtful debts (248,047,392) (375,116,388)
1,964,232,656 875,514,672
Other debts
Secured, considered good - 153,804,439
Unsecured, considered good 539,837,045 1,484,196,938
539,837,045 1,638,001,377
Total 2,504,069,701 2,513,516,049
22 Cash and bank balances
Particulars As at As atDecember 31, 2013 March 31, 2013
Cash and cash equivalents
Cheques and drafts on hand 3,958,743 138,741,122
Cash on hand 2,412,007 3,609,006
Money in transit 1,131,582 46,186,520
Bank balances in:
- Current accounts 311,417,228 624,327,824
Deposits with less than 3 months maturity 80,203,280 87,337,059
399,122,840 900,201,531
Other bank balances
Unpaid dividend accounts 2,940,574 3,302,624
Bank deposits with more than 3 months but less than 12 months maturity 39,660,093 401,265,418
Margin money 655,012,544 462,526,010
697,613,211 867,094,052
Total 1,096,736,051 1,767,295,583
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
23 Short-term loans and advances
Particulars As at As at December 31, 2013 March 31, 2013
Loans and advances to related parties
Unsecured, considered good 5,971,413 6,054,884
Others
- Advances to suppliers
- Considered good 2,147,378,119 834,155,481
- Considered doubtful 18,379,426 14,829,461
Less: Provision for doubtful advances (18,379,426) (14,829,461)
- Security deposits 25,578,328 37,229,780
- Prepaid expenses 81,530,305 73,839,380
- Balance with government authorities 343,226,941 339,189,584
- Advances to employees 16,678,903 16,453,818
- Amount due from a director (refer note below) 827,579 16,081,627
-Prepaid taxes 25,355,835 3,465,083
- Others 36,797,022 98,217,993
Unsecured, considered doubtful
- Other recoverables 269,178,746 78,661,272
Less: Provision for doubtful recoverables (269,178,746) (78,661,272)
2,677,373,032 1,418,632,746
Total 2,683,344,445 1,424,687,630
Amount due from a director as at March 31, 2013 represents remuneration paid to the Managing Director in excess of Schedule XIII of Companies Act, 1956 for the period September 1, 2011 to March 31, 2013, for which the Company had filed an application with the Central Government for post facto approval. During the current period, the Company has received the approval for annual remuneration of Rs. 14,758,620. As a result, an amount of Rs. 13,598,867 included in balance recoverable as at March 31, 2013 has been charged to the statement of profit and loss during the period and the remaining balance will be recovered from the director in six equal installments. The Company has recovered four installments in the current period and the balance amount represents the remaining two pending installments.
24 Other current assets
Particulars As at As at December 31, 2013 March 31, 2013
Interest accrued on fixed deposits 27,990,774 25,304,276
Lease rent equalisation 1,466,640 -
Recoverable from banks under corporate debt restructuring scheme (refer note 9(v)) 1,196,742,992 1,553,757,531
Others 19,342,764 13,550,427
Total 1,245,543,170 1,592,612,234
132 133
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
25 Revenue from operations
Particulars Period ended Year ended December 31, 2013 March 31, 2013
Sale of products (refer note below)
-Finished goods 11,375,092,877 16,581,877,197
-Traded goods 34,132,011 29,364,358
11,409,224,888 16,611,241,555
Sale of services - solar installation 21,544,203 206,578,620
Other operating revenues:
Scrap sales 54,180,621 70,821,176
Old liabilities and provisions no longer required written back 149,774,564 112,565,157
Export benefits - focused product scheme 102,474,729 193,831,566
Others 104,625,899 157,391,816
411,055,813 534,609,715
Total 11,841,824,904 17,352,429,890
Note:
(i) Details of sales Period ended Year endedDecember 31, 2013 March 31, 2013
Finished goods
Optical media products 8,566,235,002 13,600,972,936
Pen drives and cards 499,972,915 817,745,205
Solar cell 21,341,975 18,938,726
Module 1,736,340,843 1,227,063,091
Thin Film 23,318,577 427,001
Wafer - 65,762,631
Content aggregation & syndication 5,817,928 30,306,840
Electricity 123,005,650 146,832,366
Others 399,059,987 673,828,401
11,375,092,877 16,581,877,197
Traded goods
Sale of LED and other products 34,132,011 29,364,358
Total 11,409,224,888 16,611,241,555
26 Other income
Particulars Period ended Year ended December 31, 2013 March 31, 2013
Interest income
On deposits with banks 66,087,185 88,257,440
On income tax refunds 2,321,704 3,972,340
Other non-operating income
Gain on foreign currency transactions (net) 393,181,832 432,816,618
Lease rent 47,253,780 63,005,040
Profit on sale of fixed assets (net) - 8,254,713
Prior period income (refer note 39) 13,010,061 92,836,198
Other miscellenous income 3,184,799 43,100,551
Total 525,039,361 732,242,900
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
23 Short-term loans and advances
Particulars As at As at December 31, 2013 March 31, 2013
Loans and advances to related parties
Unsecured, considered good 5,971,413 6,054,884
Others
- Advances to suppliers
- Considered good 2,147,378,119 834,155,481
- Considered doubtful 18,379,426 14,829,461
Less: Provision for doubtful advances (18,379,426) (14,829,461)
- Security deposits 25,578,328 37,229,780
- Prepaid expenses 81,530,305 73,839,380
- Balance with government authorities 343,226,941 339,189,584
- Advances to employees 16,678,903 16,453,818
- Amount due from a director (refer note below) 827,579 16,081,627
-Prepaid taxes 25,355,835 3,465,083
- Others 36,797,022 98,217,993
Unsecured, considered doubtful
- Other recoverables 269,178,746 78,661,272
Less: Provision for doubtful recoverables (269,178,746) (78,661,272)
2,677,373,032 1,418,632,746
Total 2,683,344,445 1,424,687,630
Amount due from a director as at March 31, 2013 represents remuneration paid to the Managing Director in excess of Schedule XIII of Companies Act, 1956 for the period September 1, 2011 to March 31, 2013, for which the Company had filed an application with the Central Government for post facto approval. During the current period, the Company has received the approval for annual remuneration of Rs. 14,758,620. As a result, an amount of Rs. 13,598,867 included in balance recoverable as at March 31, 2013 has been charged to the statement of profit and loss during the period and the remaining balance will be recovered from the director in six equal installments. The Company has recovered four installments in the current period and the balance amount represents the remaining two pending installments.
24 Other current assets
Particulars As at As at December 31, 2013 March 31, 2013
Interest accrued on fixed deposits 27,990,774 25,304,276
Lease rent equalisation 1,466,640 -
Recoverable from banks under corporate debt restructuring scheme (refer note 9(v)) 1,196,742,992 1,553,757,531
Others 19,342,764 13,550,427
Total 1,245,543,170 1,592,612,234
132 133
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
25 Revenue from operations
Particulars Period ended Year ended December 31, 2013 March 31, 2013
Sale of products (refer note below)
-Finished goods 11,375,092,877 16,581,877,197
-Traded goods 34,132,011 29,364,358
11,409,224,888 16,611,241,555
Sale of services - solar installation 21,544,203 206,578,620
Other operating revenues:
Scrap sales 54,180,621 70,821,176
Old liabilities and provisions no longer required written back 149,774,564 112,565,157
Export benefits - focused product scheme 102,474,729 193,831,566
Others 104,625,899 157,391,816
411,055,813 534,609,715
Total 11,841,824,904 17,352,429,890
Note:
(i) Details of sales Period ended Year endedDecember 31, 2013 March 31, 2013
Finished goods
Optical media products 8,566,235,002 13,600,972,936
Pen drives and cards 499,972,915 817,745,205
Solar cell 21,341,975 18,938,726
Module 1,736,340,843 1,227,063,091
Thin Film 23,318,577 427,001
Wafer - 65,762,631
Content aggregation & syndication 5,817,928 30,306,840
Electricity 123,005,650 146,832,366
Others 399,059,987 673,828,401
11,375,092,877 16,581,877,197
Traded goods
Sale of LED and other products 34,132,011 29,364,358
Total 11,409,224,888 16,611,241,555
26 Other income
Particulars Period ended Year ended December 31, 2013 March 31, 2013
Interest income
On deposits with banks 66,087,185 88,257,440
On income tax refunds 2,321,704 3,972,340
Other non-operating income
Gain on foreign currency transactions (net) 393,181,832 432,816,618
Lease rent 47,253,780 63,005,040
Profit on sale of fixed assets (net) - 8,254,713
Prior period income (refer note 39) 13,010,061 92,836,198
Other miscellenous income 3,184,799 43,100,551
Total 525,039,361 732,242,900
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
27 Cost of materials consumed
Particulars Period ended Year ended December 31, 2013 March 31, 2013
Raw materials consumed (refer note below) 5,250,309,835 7,129,462,889
Packing materials consumed 853,633,856 1,287,029,819
Total 6,103,943,691 8,416,492,708
Note:
Details of major components of raw materials consumed is as follows:
Particulars Period ended Year ended December 31, 2013 March 31, 2013
(i) For storage media products
Polycarbonate 2,661,092,042 3,456,071,854
Silver 414,556,187 820,448,778
Others 1,118,579,341 1,933,830,856
(ii) For cells
Silicon wafers 3,271,594 5,487,428
Metallic pastes 635,444 -
Others 10,866 -
(iii) For modules
Multi cells 770,927,762 645,911,388
Back sheet 73,679,216 73,668,819
Aluminium frames 82,937,570 61,841,555
Glass 22,703,736 58,785,624
Others 101,424,522 73,416,587
(iv) For thin films
Others 491,555 -
Total 5,250,309,835 7,129,462,889
28 Purchase of stock-in-trade
Particulars Period ended Year endedDecember 31, 2013 March 31, 2013
Purchase of LED products 5,459,328 14,363,076
Purchase of compact disc recordable 3,958,416 86,031,274
Wafer 480,000 10,929,741
Balance of systems 90,712,192 277,876,654
Modules 424,566,432 603,525
Solar cells 24,122,554 31,580,910
Others 23,726,107 64,159,902
Total 573,025,029 485,545,082
134 135
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
29 Changes in inventories of finished goods, stock-in-trade and work-in-progress
Particulars Period ended Year endedDecember 31, 2013 March 31, 2013
Closing stock
Finished goods 1,946,977,292 1,649,226,621
Traded goods (including rights of films) 59,185,077 212,056,929
Work-in-progress 2,133,713,469 2,112,003,374
4,139,875,838 3,973,286,924
Less: Opening stock
Finished goods 1,649,226,621 2,028,075,329
Traded goods (including rights of films) 212,056,929 317,848,727
Work-in-progress 2,112,003,374 2,022,939,792
3,973,286,924 4,368,863,848
Excise duty on finished goods (8,008,389) 3,834,473
Total (158,580,525) 391,742,451
30 Employee benefit expenses
Particulars Period ended Year endedDecember 31, 2013 March 31, 2013
Salaries, wages and bonus 1,347,376,441 2,148,406,426
Contributions to:
- Provident fund & employees state insurance 70,988,118 112,716,851
- Gratuity fund 21,096,250 53,149,695
- Pension scheme in overseas subsidiaries 16,807,177 70,763,450
Social security and other benefit plans for overseas employees 4,877,555 7,394,742
Staff welfare 117,552,694 165,136,400
Total 1,578,698,235 2,557,567,564
31 Finance costs
Particulars Period ended Year endedDecember 31, 2013 March 31, 2013
Interest expense 3,197,156,593 3,945,726,538
Other borrowing costs - 16,963,644
Total 3,197,156,593 3,962,690,182
32 Depreciation, amortisation and impairment
Particulars Period ended Year endedDecember 31, 2013 March 31, 2013
Depreciation on tangible assets 2,215,556,101 3,787,713,498
Amortisation on intangible assets 205,902,699 299,119,725
Impairment on intangible assets and intangible assets under development 188,473,711 -
Impairment on tangible assets 1,137,944,051 -
Impairment of goodwill 81,677,437 -
Total 3,829,553,999 4,086,833,223
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
27 Cost of materials consumed
Particulars Period ended Year ended December 31, 2013 March 31, 2013
Raw materials consumed (refer note below) 5,250,309,835 7,129,462,889
Packing materials consumed 853,633,856 1,287,029,819
Total 6,103,943,691 8,416,492,708
Note:
Details of major components of raw materials consumed is as follows:
Particulars Period ended Year ended December 31, 2013 March 31, 2013
(i) For storage media products
Polycarbonate 2,661,092,042 3,456,071,854
Silver 414,556,187 820,448,778
Others 1,118,579,341 1,933,830,856
(ii) For cells
Silicon wafers 3,271,594 5,487,428
Metallic pastes 635,444 -
Others 10,866 -
(iii) For modules
Multi cells 770,927,762 645,911,388
Back sheet 73,679,216 73,668,819
Aluminium frames 82,937,570 61,841,555
Glass 22,703,736 58,785,624
Others 101,424,522 73,416,587
(iv) For thin films
Others 491,555 -
Total 5,250,309,835 7,129,462,889
28 Purchase of stock-in-trade
Particulars Period ended Year endedDecember 31, 2013 March 31, 2013
Purchase of LED products 5,459,328 14,363,076
Purchase of compact disc recordable 3,958,416 86,031,274
Wafer 480,000 10,929,741
Balance of systems 90,712,192 277,876,654
Modules 424,566,432 603,525
Solar cells 24,122,554 31,580,910
Others 23,726,107 64,159,902
Total 573,025,029 485,545,082
134 135
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
29 Changes in inventories of finished goods, stock-in-trade and work-in-progress
Particulars Period ended Year endedDecember 31, 2013 March 31, 2013
Closing stock
Finished goods 1,946,977,292 1,649,226,621
Traded goods (including rights of films) 59,185,077 212,056,929
Work-in-progress 2,133,713,469 2,112,003,374
4,139,875,838 3,973,286,924
Less: Opening stock
Finished goods 1,649,226,621 2,028,075,329
Traded goods (including rights of films) 212,056,929 317,848,727
Work-in-progress 2,112,003,374 2,022,939,792
3,973,286,924 4,368,863,848
Excise duty on finished goods (8,008,389) 3,834,473
Total (158,580,525) 391,742,451
30 Employee benefit expenses
Particulars Period ended Year endedDecember 31, 2013 March 31, 2013
Salaries, wages and bonus 1,347,376,441 2,148,406,426
Contributions to:
- Provident fund & employees state insurance 70,988,118 112,716,851
- Gratuity fund 21,096,250 53,149,695
- Pension scheme in overseas subsidiaries 16,807,177 70,763,450
Social security and other benefit plans for overseas employees 4,877,555 7,394,742
Staff welfare 117,552,694 165,136,400
Total 1,578,698,235 2,557,567,564
31 Finance costs
Particulars Period ended Year endedDecember 31, 2013 March 31, 2013
Interest expense 3,197,156,593 3,945,726,538
Other borrowing costs - 16,963,644
Total 3,197,156,593 3,962,690,182
32 Depreciation, amortisation and impairment
Particulars Period ended Year endedDecember 31, 2013 March 31, 2013
Depreciation on tangible assets 2,215,556,101 3,787,713,498
Amortisation on intangible assets 205,902,699 299,119,725
Impairment on intangible assets and intangible assets under development 188,473,711 -
Impairment on tangible assets 1,137,944,051 -
Impairment of goodwill 81,677,437 -
Total 3,829,553,999 4,086,833,223
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
33 Other expenses
Particulars Period ended Year endedDecember 31, 2013 March 31, 2013
Consumption of stores and spare parts 287,907,885 492,622,368
Power and fuel 1,397,681,497 1,932,272,099
Freight and forwarding 223,128,022 319,726,470
Royalty 190,041,208 789,232,289
Commission on sales 51,642,389 17,350,296
Rent 148,028,223 181,869,844
Repair and maintence
- Buildings 1,037,732 1,117,458
- Machinery 20,005,397 45,981,983
- Others 26,649,618 34,919,245
Insurance 89,155,001 143,496,330
Director’s sitting fees 1,776,591 3,107,307
Rates and taxes 3,659,396 12,387,843
Provision for doubtful debtors 106,037,211 55,744,398
Travelling and conveyance 74,279,528 140,315,708
Legal and professional 166,755,644 319,433,449
Warranty expenses 23,557,977 56,551,914
Provision for doubtful advances 9,349,527 63,104,015
Loss on cancellation of forward contracts (net) 55,255,129 324,065,838
Bad debts 256,867,980 2,866,279
Advances written off 1,843,891 60,130
Research and development expenses 44,280,465 43,766,147
Advertisement and business promotion 27,977,194 74,094,054
Outsourced staff cost 163,250,322 234,770,524
Provision for films under production 27,954,978 10,045,546
Provision for slow moving stock 170,223,847 -
Loss on sale of fixed assets (net) 1,128,935 -
Bank charges 73,050,583 117,416,846
Others 204,888,515 478,300,435
Total 3,847,414,685 5,894,618,815
34 Exceptional items
Particulars Period ended Year endedDecember 31, 2013 March 31, 2013
Exchange differences on foreign currency convertible bonds/ advance to suppliers (37,101,397) -
Advances and other receivables written off (41,804,279) -
Provision for doubtful advances (204,948,341) -
Refund of interest of prior period under corporate debt restructuring 331,510,604 233,193,729
Diminution in value of investments* - (593,327,997)
Total 47,656,587 (360,134,268)
* Provision for diminution of Rs. Nil (previous year Rs. 593,327,997) of investment in three technology companies based on management assessment performed as at March 31, 2013, which in the view of the management represents other than temporary diminution in the value of investments.
136 137
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
35 Subsidiaries and associates
The consolidated financial statements comprise the results of the Parent, Moser Baer India Limited (MBIL), its subsidiaries and associates.
(a) Subsidiaries:
The particulars of subsidiaries considered in the consolidated financial statements are as under :
Names of subsidiaries Country of % of ownership incorporation
European Optic Media Technology GMBH Germany 100%
Helios Photo Voltaic Limited (formerly known as Moser Baer Photo
Voltaic Limited) India 100%
Moser Baer Solar Limited India 100%
Moser Baer SEZ Developer Limited India 100%
Advoferm Limited Cyprus 100%
Peraround Limited Cyprus 100%
Perafly Limited Cyprus 100%
Nicofly Limited Cyprus 100%
Perasoft Limited Cyprus 100%
Dalecrest Limited Cyprus 100%
Moser Baer Entertainment Limited India 100%
Moser Baer Laboratories Limited India 100%
Solar Research Limited India 100%
Crownglobe Limited Cyprus 100%
OM&T B.V.* Netherlands 100%
Moser Baer Investments Limited India 100%
Photovoltaic Holdings Limited Isle of Man 100%
Cubic Technologies B.V. Netherlands 100%
Moser Baer Infrastructure and Developers Limited India 100%
MB Solar Holdings Limited Isle of Man 100%
Tifton Limited Isle of Man 100%
Moser Baer Technologies Inc. USA 100%
Moser Baer Photovoltaic Inc. USA 100%
Value Solar Energy Private Limited India 100%
Admire Energy Solutions Private limited India 100%
Moser Baer Solar Systems Private Limited India 100%
Competent Solar Energy Private Limited India 100%
Pride Solar Systems Private Limited India 100%
* Declared as insolvent from October 1, 2013
(b) Associates:
The particulars of associates considered in the CFS are as under :
Names of associates Country of % of ownership incorporation
Global Data Media FZ LLC Dubai, United Arab Emirates 49%
Moser Baer Infrastructure Limited India 26%
Solarvalue Proizvodnja d.d. (under liquidation) Slovenia 40%
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
33 Other expenses
Particulars Period ended Year endedDecember 31, 2013 March 31, 2013
Consumption of stores and spare parts 287,907,885 492,622,368
Power and fuel 1,397,681,497 1,932,272,099
Freight and forwarding 223,128,022 319,726,470
Royalty 190,041,208 789,232,289
Commission on sales 51,642,389 17,350,296
Rent 148,028,223 181,869,844
Repair and maintence
- Buildings 1,037,732 1,117,458
- Machinery 20,005,397 45,981,983
- Others 26,649,618 34,919,245
Insurance 89,155,001 143,496,330
Director’s sitting fees 1,776,591 3,107,307
Rates and taxes 3,659,396 12,387,843
Provision for doubtful debtors 106,037,211 55,744,398
Travelling and conveyance 74,279,528 140,315,708
Legal and professional 166,755,644 319,433,449
Warranty expenses 23,557,977 56,551,914
Provision for doubtful advances 9,349,527 63,104,015
Loss on cancellation of forward contracts (net) 55,255,129 324,065,838
Bad debts 256,867,980 2,866,279
Advances written off 1,843,891 60,130
Research and development expenses 44,280,465 43,766,147
Advertisement and business promotion 27,977,194 74,094,054
Outsourced staff cost 163,250,322 234,770,524
Provision for films under production 27,954,978 10,045,546
Provision for slow moving stock 170,223,847 -
Loss on sale of fixed assets (net) 1,128,935 -
Bank charges 73,050,583 117,416,846
Others 204,888,515 478,300,435
Total 3,847,414,685 5,894,618,815
34 Exceptional items
Particulars Period ended Year endedDecember 31, 2013 March 31, 2013
Exchange differences on foreign currency convertible bonds/ advance to suppliers (37,101,397) -
Advances and other receivables written off (41,804,279) -
Provision for doubtful advances (204,948,341) -
Refund of interest of prior period under corporate debt restructuring 331,510,604 233,193,729
Diminution in value of investments* - (593,327,997)
Total 47,656,587 (360,134,268)
* Provision for diminution of Rs. Nil (previous year Rs. 593,327,997) of investment in three technology companies based on management assessment performed as at March 31, 2013, which in the view of the management represents other than temporary diminution in the value of investments.
136 137
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
35 Subsidiaries and associates
The consolidated financial statements comprise the results of the Parent, Moser Baer India Limited (MBIL), its subsidiaries and associates.
(a) Subsidiaries:
The particulars of subsidiaries considered in the consolidated financial statements are as under :
Names of subsidiaries Country of % of ownership incorporation
European Optic Media Technology GMBH Germany 100%
Helios Photo Voltaic Limited (formerly known as Moser Baer Photo
Voltaic Limited) India 100%
Moser Baer Solar Limited India 100%
Moser Baer SEZ Developer Limited India 100%
Advoferm Limited Cyprus 100%
Peraround Limited Cyprus 100%
Perafly Limited Cyprus 100%
Nicofly Limited Cyprus 100%
Perasoft Limited Cyprus 100%
Dalecrest Limited Cyprus 100%
Moser Baer Entertainment Limited India 100%
Moser Baer Laboratories Limited India 100%
Solar Research Limited India 100%
Crownglobe Limited Cyprus 100%
OM&T B.V.* Netherlands 100%
Moser Baer Investments Limited India 100%
Photovoltaic Holdings Limited Isle of Man 100%
Cubic Technologies B.V. Netherlands 100%
Moser Baer Infrastructure and Developers Limited India 100%
MB Solar Holdings Limited Isle of Man 100%
Tifton Limited Isle of Man 100%
Moser Baer Technologies Inc. USA 100%
Moser Baer Photovoltaic Inc. USA 100%
Value Solar Energy Private Limited India 100%
Admire Energy Solutions Private limited India 100%
Moser Baer Solar Systems Private Limited India 100%
Competent Solar Energy Private Limited India 100%
Pride Solar Systems Private Limited India 100%
* Declared as insolvent from October 1, 2013
(b) Associates:
The particulars of associates considered in the CFS are as under :
Names of associates Country of % of ownership incorporation
Global Data Media FZ LLC Dubai, United Arab Emirates 49%
Moser Baer Infrastructure Limited India 26%
Solarvalue Proizvodnja d.d. (under liquidation) Slovenia 40%
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
(c) Particulars of investment in associates:
Particulars Moser Baer Infrastructure Limited Global Data Media FZ LLC
As at As at As at As atDecember 31, 2013 March 31, 2013 December 31, 2013 March 31, 2013
Cost of investment 34,300,000 34,300,000 92,532,185 92,532,185
Carrying value of the investment at the beginning of the perod/ year - - - -
Investment made during the period/year - - - -
Add: Share of post acquisition (loss)/ profits (net) - - - -
Less: Value of investments impaired - - - -
Carrying value at the end of the period/year - - - -
Pursuant to Accounting Standard - 23 on Accounting for Investments in Associates in the Consolidated Financial Statements, investment in Moser Baer Infrastructure Limited and Global Data Media FZ LLC has been reported at Rs. Nil (previous year Rs. Nil) as the share of losses of the associate exceeds the carrying amount of investments as at the balance sheet date.
36 Contingent liabilities
(a) Particulars As at As at December 31, 2013 March 31, 2013
Bank guarantees issued * 76,380,523 168,217,893
Recompense amount payable in lieu of bank sacrifice
(mandatory disclosure as per RBI) 1,918,595,862 1,049,565,084
* The amount shown above represent guarantees given in the normal course of the Group’s operations and are not expected to result in any loss to the Group on the basis of the beneficiary fulfilling its ordinary commercial obligations.
(b) Disputed demands (gross) in respect of: As at As atDecember 31, 2013 March 31, 2013
Entry tax
[Amount paid under protest Rs. 11,928,443 (previous year Rs. 10,354,421) paid through bank guarantees Rs.15,558,616 (previous year Rs. 10,919,501)] 137,531,606 135,623,048
Service tax
[Amount paid under protest Rs. 2,953,470 (previous year Rs. 2,953,470)] 695,928,194 367,384,719
Sales tax
[Amount paid under protest Rs. 18,454,494 (previous year Rs. 17,010,790) bank and other guarantees furnished Rs. 104,723,040 (previous year Rs. 26,382,617)] 170,281,883 127,173,220
Custom duty and excise duty (including penalties)
[Amount paid under protest Rs. 5,805,819 (previous year Rs. 5,796,635 )] 543,349,313 527,676,009
Income tax
[Amount paid under protest Rs. 34,500,000 (previous year Rs. 34,500,000)] 115,689,581 112,775,091
Total 1,662,780,577 1,270,632,087
(c) Claims against the Group not acknowledged as debt Rs. 345,900 (previous year Rs. Nil)
(d) Letters of credit opened by banks on behalf of the Group: Rs. 244,331,479 (previous year Rs. 356,269,994).
The amounts shown in (b) and (c) above represent the best possible estimates arrived at on the basis of available information. The uncertainties and possible reimbursements are dependent on the outcome of the different legal processes which have been invoked by the Group or the claimants as the case may be and therefore cannot be estimated accurately. The Group engages reputed professional advisors to protect its interests and has been advised that it has strong legal positions against such disputes.
138 139
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
37 Capital commitments(a) Estimated value of contracts remaining to be executed on capital account and not provided for (net of advances): Rs.
193,385,342 (previous year Rs. 191,306,155).(b) Considering the shortage of high-purity poly-silicon wafers, the most important raw material in the crystalline-silicon
segment of the photovoltaic solar-industry, Helios Photo Voltaic Limited (formerly known as Moser Baer Photo Voltaic Limited) entered into long-term fixed-price contracts in 2007 and 2008 for their purchase from two wafer suppliers. Considering the revised economics of the solar industry, the company had negotiated with such wafer suppliers with regard to its quantity, price and delivery commitments to the current market situation. Consequently:
(i) In the case of a wafer supplier, the Company has made efforts to re-negotiate contract. After a number of such attempts, the Company has terminated the contract and called on bank guarantee which was encashed during FY 2011-12. The Company also called on two more bank guarantees, which were challenged by the vendor in international courts. The vendor has meanwhile raised a claim amounting to Rs. 1,073,400,392 (previous year Rs. 1,073,400,392) on the Company which has not been acknowledged as debt. Based on legal advice and the facts as stated above, the Company believes that no provision is necessary in the financial statements as on December 31, 2013.
(ii) As per the terms of agreement dated January 10, 2011, the advance of Rs. 2,139,510,213 (USD 34,614,305) which was secured through a bank guarantee received against the original agreement of 2008 was to be adjusted against future purchases by the Company at an agreed market connected price and the balance was to be refunded back to the Company after 5 years from the date of agreement subject to a 5% adjustment. As per the terms of the “Amendment Agreement”, the supplier was to provide an amended bank guarantee which has not been provided, causing therefore, a breach.During the period, the supplier sought to cancel the bank guarantee that they furnished in 2008 against the advance given to them by the Company. A notice citing the serious nature of the breach was sent to the supplier allowing them 60 days to cure as per the terms of the agreement. Upon expiry of 60 days, the contract has been terminated and a notice invoking the bank guarantee has been served to them through Company’s bankers. Post termination of the contract, the asset classification for the advance has changed to monetary asset and in terms of Accounting Standard 11 - ‘The Effects of Changes in Foreign Exchange Rates’, it has been re-stated at current foreign currency exchange rate which has resulted in exchange gain of Rs. 629,746,104. A provision of Rs. 209,948,341 has also been made towards 5% potential claim of the supplier for the volume short purchased by the company during prevalence of the agreement.Based on a legal opinion, management continues to believe that the amount is recoverable and accordingly, no further provision is required to be made in the financial statements.
38 Lease obligations(a) The Group has entered into operating leases for its offices, guest houses and employee’s residences that are renewable on a
periodic basis and are cancellable at Group’s option. Total lease payments recognised in the consolidated statement of profit and loss Rs. 148,028,223 (previous year Rs. 181,869,844) . The total rent recovered on sub lease Rs. 47,253,780 (previous year Rs. 63,005,040).
(b) The Company and its subisidiary - Moser Baer Entertainment Limited has taken buildings on operating lease. Future lease payments & receivables for the non cancellable lease are given as under:
Particulars As at As at December 31, 2013 March 31, 2013
Total of future minimum lease payments under non cancellable operating lease for a period 21,015,919 69,542,419
a. Not later than one year 21,015,919 64,285,067
b. Later than one year but not later than five years - 5,257,352
c. Later than five years - -
Total of future minimum sub-lease rental receivable for non cancellable period of three years: 18,376,470 65,630,250
39 Prior period income/ (expenses)
Particulars Period ended Year ended December 31, 2013 March 31, 2013
Excess consumption of previous year reversed 2,857,577 27,491,550
Excess employee benefits expense of previous year reversed 3,353,062 -
Sale of product/ services 6,383,334 66,849,472
Other expenses (220,242) (1,535,070)
Miscellaneous income 636,330 30,246
Total 13,010,061 92,836,198
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
(c) Particulars of investment in associates:
Particulars Moser Baer Infrastructure Limited Global Data Media FZ LLC
As at As at As at As atDecember 31, 2013 March 31, 2013 December 31, 2013 March 31, 2013
Cost of investment 34,300,000 34,300,000 92,532,185 92,532,185
Carrying value of the investment at the beginning of the perod/ year - - - -
Investment made during the period/year - - - -
Add: Share of post acquisition (loss)/ profits (net) - - - -
Less: Value of investments impaired - - - -
Carrying value at the end of the period/year - - - -
Pursuant to Accounting Standard - 23 on Accounting for Investments in Associates in the Consolidated Financial Statements, investment in Moser Baer Infrastructure Limited and Global Data Media FZ LLC has been reported at Rs. Nil (previous year Rs. Nil) as the share of losses of the associate exceeds the carrying amount of investments as at the balance sheet date.
36 Contingent liabilities
(a) Particulars As at As at December 31, 2013 March 31, 2013
Bank guarantees issued * 76,380,523 168,217,893
Recompense amount payable in lieu of bank sacrifice
(mandatory disclosure as per RBI) 1,918,595,862 1,049,565,084
* The amount shown above represent guarantees given in the normal course of the Group’s operations and are not expected to result in any loss to the Group on the basis of the beneficiary fulfilling its ordinary commercial obligations.
(b) Disputed demands (gross) in respect of: As at As atDecember 31, 2013 March 31, 2013
Entry tax
[Amount paid under protest Rs. 11,928,443 (previous year Rs. 10,354,421) paid through bank guarantees Rs.15,558,616 (previous year Rs. 10,919,501)] 137,531,606 135,623,048
Service tax
[Amount paid under protest Rs. 2,953,470 (previous year Rs. 2,953,470)] 695,928,194 367,384,719
Sales tax
[Amount paid under protest Rs. 18,454,494 (previous year Rs. 17,010,790) bank and other guarantees furnished Rs. 104,723,040 (previous year Rs. 26,382,617)] 170,281,883 127,173,220
Custom duty and excise duty (including penalties)
[Amount paid under protest Rs. 5,805,819 (previous year Rs. 5,796,635 )] 543,349,313 527,676,009
Income tax
[Amount paid under protest Rs. 34,500,000 (previous year Rs. 34,500,000)] 115,689,581 112,775,091
Total 1,662,780,577 1,270,632,087
(c) Claims against the Group not acknowledged as debt Rs. 345,900 (previous year Rs. Nil)
(d) Letters of credit opened by banks on behalf of the Group: Rs. 244,331,479 (previous year Rs. 356,269,994).
The amounts shown in (b) and (c) above represent the best possible estimates arrived at on the basis of available information. The uncertainties and possible reimbursements are dependent on the outcome of the different legal processes which have been invoked by the Group or the claimants as the case may be and therefore cannot be estimated accurately. The Group engages reputed professional advisors to protect its interests and has been advised that it has strong legal positions against such disputes.
138 139
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
37 Capital commitments(a) Estimated value of contracts remaining to be executed on capital account and not provided for (net of advances): Rs.
193,385,342 (previous year Rs. 191,306,155).(b) Considering the shortage of high-purity poly-silicon wafers, the most important raw material in the crystalline-silicon
segment of the photovoltaic solar-industry, Helios Photo Voltaic Limited (formerly known as Moser Baer Photo Voltaic Limited) entered into long-term fixed-price contracts in 2007 and 2008 for their purchase from two wafer suppliers. Considering the revised economics of the solar industry, the company had negotiated with such wafer suppliers with regard to its quantity, price and delivery commitments to the current market situation. Consequently:
(i) In the case of a wafer supplier, the Company has made efforts to re-negotiate contract. After a number of such attempts, the Company has terminated the contract and called on bank guarantee which was encashed during FY 2011-12. The Company also called on two more bank guarantees, which were challenged by the vendor in international courts. The vendor has meanwhile raised a claim amounting to Rs. 1,073,400,392 (previous year Rs. 1,073,400,392) on the Company which has not been acknowledged as debt. Based on legal advice and the facts as stated above, the Company believes that no provision is necessary in the financial statements as on December 31, 2013.
(ii) As per the terms of agreement dated January 10, 2011, the advance of Rs. 2,139,510,213 (USD 34,614,305) which was secured through a bank guarantee received against the original agreement of 2008 was to be adjusted against future purchases by the Company at an agreed market connected price and the balance was to be refunded back to the Company after 5 years from the date of agreement subject to a 5% adjustment. As per the terms of the “Amendment Agreement”, the supplier was to provide an amended bank guarantee which has not been provided, causing therefore, a breach.During the period, the supplier sought to cancel the bank guarantee that they furnished in 2008 against the advance given to them by the Company. A notice citing the serious nature of the breach was sent to the supplier allowing them 60 days to cure as per the terms of the agreement. Upon expiry of 60 days, the contract has been terminated and a notice invoking the bank guarantee has been served to them through Company’s bankers. Post termination of the contract, the asset classification for the advance has changed to monetary asset and in terms of Accounting Standard 11 - ‘The Effects of Changes in Foreign Exchange Rates’, it has been re-stated at current foreign currency exchange rate which has resulted in exchange gain of Rs. 629,746,104. A provision of Rs. 209,948,341 has also been made towards 5% potential claim of the supplier for the volume short purchased by the company during prevalence of the agreement.Based on a legal opinion, management continues to believe that the amount is recoverable and accordingly, no further provision is required to be made in the financial statements.
38 Lease obligations(a) The Group has entered into operating leases for its offices, guest houses and employee’s residences that are renewable on a
periodic basis and are cancellable at Group’s option. Total lease payments recognised in the consolidated statement of profit and loss Rs. 148,028,223 (previous year Rs. 181,869,844) . The total rent recovered on sub lease Rs. 47,253,780 (previous year Rs. 63,005,040).
(b) The Company and its subisidiary - Moser Baer Entertainment Limited has taken buildings on operating lease. Future lease payments & receivables for the non cancellable lease are given as under:
Particulars As at As at December 31, 2013 March 31, 2013
Total of future minimum lease payments under non cancellable operating lease for a period 21,015,919 69,542,419
a. Not later than one year 21,015,919 64,285,067
b. Later than one year but not later than five years - 5,257,352
c. Later than five years - -
Total of future minimum sub-lease rental receivable for non cancellable period of three years: 18,376,470 65,630,250
39 Prior period income/ (expenses)
Particulars Period ended Year ended December 31, 2013 March 31, 2013
Excess consumption of previous year reversed 2,857,577 27,491,550
Excess employee benefits expense of previous year reversed 3,353,062 -
Sale of product/ services 6,383,334 66,849,472
Other expenses (220,242) (1,535,070)
Miscellaneous income 636,330 30,246
Total 13,010,061 92,836,198
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
40 Taxation
Provision for taxation has not been made in the absence of assessable taxable profits as per the Income Tax Act,1961 as of December 31, 2013.
The break up of deferred tax liability/ asset is as under:
Particulars of timing differences Year ended Movement during Period ended March 31, 2013 the period December 31, 2013
Deferred tax liability
Depreciation/ amortisation 497,554,494 (323,932,169) 173,622,325
Provision for lease rent equalisation 2,045,670 (511,416) 1,534,254
499,600,164 (324,443,585) 175,156,579
Deferred tax assets
Finance lease 122,682,180 15,840,985 138,523,165
Unabsorbed depreciation/ amortisation 374,872,314 (339,773,154) 35,099,160
Provision for compensated absencesand gratuity 2,045,670 (511,416) 1,534,254
499,600,164 (324,443,585) 175,156,579
Net deferred tax asset - - -
Notes:
1. The tax impact for the above purpose has been arrived at by applying a tax rate of 33.99% (previous year 33.99%) being the prevailing tax rate for Indian companies under the Income Tax Act, 1961.
2. Deferred tax asset has been recognised only to the extent of deferred tax liability.
41 Derivative instruments
The Group uses forward exchange contracts to hedge against its foreign currency exposures relating to the underlying transactions. The Group does not enter into any derivative instruments for trading or speculative purposes.
(a) The forward exchange contracts outstanding as at December 31, 2013 are as under:
Currency exchange As at December 31, 2013 As at March 31, 2013
USD/INR EUR/INR USD/INR EUR/INR
(i) Number of ‘buy’ contracts 1 - 1 -
(ii) Aggregate amount (foreign currency) 2,499,992 - 2,499,992 -
Aggregate amount (Rs.) 163,336,977 - 142,099,545 -
(iii) Number of ‘sell’ contracts 2 - 9 1
(iv) Aggregate amount (foreign currency) 1,500,000 - 10,000,000 2,000,000
Aggregate amount (Rs.) 104,700,000 - 562,040,000 148,390,000
(b) The foreign currency exposures not hedged as at period ended December 31, 2013 are as under:
(i) Receivables
Type of currency As at December 31, 2013 As at March 31, 2013
Foreign currency Rs. value Foreign currency Rs. value
USD 88,385,057 5,176,219,983 78,696,555 4,207,752,412
EUR 31,836,519 2,497,024,972 30,825,312 2,055,263,986
GBP 1 145 1 117
NOK - - 4,647 43,225
JPY 725,337 425,555 62,030 35,779
SGD 165 8,053 165 7,200
CNY - - 3,636 28,206
140 141
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
(ii) Payables
Type of currency As at December 31, 2013 As at March 31, 2013
Foreign currency Rs. value Foreign currency Rs. value
USD 157,345,962 9,549,713,198 146,583,457 7,927,760,631
EUR 18,821,936 1,266,417,829 38,176,107 2,427,526,924
GBP 33,455 3,180,039 22,651 1,809,442
CHF 160,428 10,827,621 198,885 11,458,871
JPY 48,442,176 27,776,555 72,889,034 41,897,093
SGD 126,644 6,195,434 99,498 4,354,023
CNY 8,922 69,210 36,859 278,687
NOK 23,234 179,831 - -
42 Related party transactions
As required by Accounting Standard 18 - ‘Related Party Disclosures’ notified under the Companies Act, 1956, since the consolidated financial statements presents information about the parent and its subsidiary as a single reporting enterprise, it is not necessary to disclose intra-group transactions.
In accordance with the requirements of Accounting Standard - 18 ‘Related Party Disclosures’ the names of the related party where control/ ability to exercise significant influence exists, along with the aggregate amount of transactions and year end balances with them as identified and certified by the management are given below:
(a) Names of related parties
Name of the company Nature of relationship % of holding
Global Data Media FZ LLC Associate 49%
Moser Baer Infrastructure Limited Associate 26%
Solar Value Proizvodjna d.d. Associate 40%
Moser Baer Trust Trust -
Enterprises over which key management personnel exercise significant influence
Moser Baer Engineering and Construction Limited
Sapphire Industrial Infrastructure Private Limited
Moser Baer Energy & Development Limited
Moser Baer Clean Energy Limited
Key management personnel
Chairman and managing director Mr. Deepak Puri
Whole time director Mrs. Nita Puri
Executive director Mr. Ratul Puri*
(*Resigned in previous year)
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
40 Taxation
Provision for taxation has not been made in the absence of assessable taxable profits as per the Income Tax Act,1961 as of December 31, 2013.
The break up of deferred tax liability/ asset is as under:
Particulars of timing differences Year ended Movement during Period ended March 31, 2013 the period December 31, 2013
Deferred tax liability
Depreciation/ amortisation 497,554,494 (323,932,169) 173,622,325
Provision for lease rent equalisation 2,045,670 (511,416) 1,534,254
499,600,164 (324,443,585) 175,156,579
Deferred tax assets
Finance lease 122,682,180 15,840,985 138,523,165
Unabsorbed depreciation/ amortisation 374,872,314 (339,773,154) 35,099,160
Provision for compensated absencesand gratuity 2,045,670 (511,416) 1,534,254
499,600,164 (324,443,585) 175,156,579
Net deferred tax asset - - -
Notes:
1. The tax impact for the above purpose has been arrived at by applying a tax rate of 33.99% (previous year 33.99%) being the prevailing tax rate for Indian companies under the Income Tax Act, 1961.
2. Deferred tax asset has been recognised only to the extent of deferred tax liability.
41 Derivative instruments
The Group uses forward exchange contracts to hedge against its foreign currency exposures relating to the underlying transactions. The Group does not enter into any derivative instruments for trading or speculative purposes.
(a) The forward exchange contracts outstanding as at December 31, 2013 are as under:
Currency exchange As at December 31, 2013 As at March 31, 2013
USD/INR EUR/INR USD/INR EUR/INR
(i) Number of ‘buy’ contracts 1 - 1 -
(ii) Aggregate amount (foreign currency) 2,499,992 - 2,499,992 -
Aggregate amount (Rs.) 163,336,977 - 142,099,545 -
(iii) Number of ‘sell’ contracts 2 - 9 1
(iv) Aggregate amount (foreign currency) 1,500,000 - 10,000,000 2,000,000
Aggregate amount (Rs.) 104,700,000 - 562,040,000 148,390,000
(b) The foreign currency exposures not hedged as at period ended December 31, 2013 are as under:
(i) Receivables
Type of currency As at December 31, 2013 As at March 31, 2013
Foreign currency Rs. value Foreign currency Rs. value
USD 88,385,057 5,176,219,983 78,696,555 4,207,752,412
EUR 31,836,519 2,497,024,972 30,825,312 2,055,263,986
GBP 1 145 1 117
NOK - - 4,647 43,225
JPY 725,337 425,555 62,030 35,779
SGD 165 8,053 165 7,200
CNY - - 3,636 28,206
140 141
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
(ii) Payables
Type of currency As at December 31, 2013 As at March 31, 2013
Foreign currency Rs. value Foreign currency Rs. value
USD 157,345,962 9,549,713,198 146,583,457 7,927,760,631
EUR 18,821,936 1,266,417,829 38,176,107 2,427,526,924
GBP 33,455 3,180,039 22,651 1,809,442
CHF 160,428 10,827,621 198,885 11,458,871
JPY 48,442,176 27,776,555 72,889,034 41,897,093
SGD 126,644 6,195,434 99,498 4,354,023
CNY 8,922 69,210 36,859 278,687
NOK 23,234 179,831 - -
42 Related party transactions
As required by Accounting Standard 18 - ‘Related Party Disclosures’ notified under the Companies Act, 1956, since the consolidated financial statements presents information about the parent and its subsidiary as a single reporting enterprise, it is not necessary to disclose intra-group transactions.
In accordance with the requirements of Accounting Standard - 18 ‘Related Party Disclosures’ the names of the related party where control/ ability to exercise significant influence exists, along with the aggregate amount of transactions and year end balances with them as identified and certified by the management are given below:
(a) Names of related parties
Name of the company Nature of relationship % of holding
Global Data Media FZ LLC Associate 49%
Moser Baer Infrastructure Limited Associate 26%
Solar Value Proizvodjna d.d. Associate 40%
Moser Baer Trust Trust -
Enterprises over which key management personnel exercise significant influence
Moser Baer Engineering and Construction Limited
Sapphire Industrial Infrastructure Private Limited
Moser Baer Energy & Development Limited
Moser Baer Clean Energy Limited
Key management personnel
Chairman and managing director Mr. Deepak Puri
Whole time director Mrs. Nita Puri
Executive director Mr. Ratul Puri*
(*Resigned in previous year)
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
(b) Details of transactions with the related parties along with period/ year end balances in the ordinary course of business:
(Figures in brackets are for previous year)
Particulars Associates Key Moser Baer Enterprises Total management Trust over which key
personnel management personnel
exercise significant influence
Sales of finished goods/ services
Moser Baer Engineering and Construction Limited - - - - -
( - ) ( - ) ( - ) (141,573,600) (141,573,600)
Purchase of trading goods from related party
Moser Baer Engineering and Construction Limited - - - -
( - ) ( - ) ( - ) (4,713,420)
Sapphire Industrial Infrastructure Private Limited - - - - -
( - ) ( - ) ( - ) (2,727,961) (7,441,381)
Service rendered to related party
Moser Baer Engineering and Construction Limited - - - 47,781,090 47,781,090
( - ) ( - ) ( - ) (66,268,515) (66,268,515)
Expenses incurred/ payment made by the company on behalf of related party
Moser Baer Engineering and Construction Limited - - - - -
( - ) ( - ) ( - ) (321,307) (321,307)
Reimbursement/ recovery of expenses/ services
Moser Baer Engineering and Construction Limited - - - 36,595,597 36,595,597
( - ) ( - ) ( - ) (53,661,854) (53,661,854)
Provision of diminution of long-term investment
Global Data Media FZ LLC 30,438,813 - - - 30,438,813
( - ) ( - ) ( - ) ( - ) ( - )
Lease rent charged to related party
Moser Baer Engineering and Construction Limited - - - 4,728,780 4,728,780
( - ) ( - ) ( - ) (6,305,040) (6,305,040)
Issue of equity shares
Deepak Puri - 300,000,000 - - 300,000,000
( - ) ( - ) ( - ) ( - ) ( - )
Issue of preference shares by subsidiary
Deepak Puri - - - ( - ) -
( - ) (10,000,000) ( - ) (10,000,000) ( - )
Directors remuneration
Deepak Puri - 25,185,077 - -
( - ) (4,800,000) ( - ) ( - )
Nita Puri - 3,187,503 - - 28,372,580
( - ) (4,250,000) ( - ) ( - ) (9,050,000)
Outstanding receivables
In respect of sales of goods or services rendered
Global Data Media FZ LLC 110,494,136 - - -
(237,588,923) ( - ) ( - ) ( - )
142 143
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
Particulars Associates Key Moser Baer Enterprises Total management Trust over which key
personnel management personnel
exercise significant influence
Moser Baer Clean Energy Limited - - - -
( - ) ( - ) ( - ) (67,275)
Moser Baer Engineering and Construction Limited - - - 929,687,509 1,040,181,645
( - ) ( - ) ( - ) (944,340,709) (1,181,996,907)
In respect of loans & advances
Moser Baer Engineering and Construction Limited - - - - -
( - ) ( - ) ( - ) (35,974,260) (35,974,260)
In respect of managerial remuneration
Deepak Puri - 966 - -
( - ) (16,081,627) ( - ) ( - )
Ratul Puri - 1,147,902 - - 1,148,868
( - ) (1,147,902) ( - ) ( - ) (17,229,529)
Outstanding payables
In respect of purchase of goods
Sapphire Industrial Infrastructure Private Limited - - - 4,397,434
( - ) ( - ) ( - ) (4,397,434)
Moser Baer Energy & Development Limited - - - 39,477,368 43,874,802
( - ) ( - ) ( - ) (39,477,368) (43,874,802)
In respect of advance received from customer - - 9,927 - 9,927
( - ) ( - ) (9,927) ( - ) (9,927)
In respect of security deposit received for lease
Moser Baer Engineering and Construction Limited - - - 12,000,000 12,000,000
( - ) ( - ) ( - ) (12,000,000) (12,000,000)
In respect of managerial remuneration
Nita Puri - 414,182 - - 414,182
( - ) (450,432) ( - ) ( - ) (450,432)
43 Loss per share
Particulars Period ended Year ended December 31, 2013 March 31, 2013
(a) Weighted average number of equity shares for basic and diluted earningper share 185,578,831 168,306,104
(b) Net loss after tax available for equity shareholders (6,955,644,158) (9,162,320,008)
Loss per share (face value per share Rs. 10 each)
- Basic (37.48) (54.44)
- Diluted (37.48) (54.44)
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
(b) Details of transactions with the related parties along with period/ year end balances in the ordinary course of business:
(Figures in brackets are for previous year)
Particulars Associates Key Moser Baer Enterprises Total management Trust over which key
personnel management personnel
exercise significant influence
Sales of finished goods/ services
Moser Baer Engineering and Construction Limited - - - - -
( - ) ( - ) ( - ) (141,573,600) (141,573,600)
Purchase of trading goods from related party
Moser Baer Engineering and Construction Limited - - - -
( - ) ( - ) ( - ) (4,713,420)
Sapphire Industrial Infrastructure Private Limited - - - - -
( - ) ( - ) ( - ) (2,727,961) (7,441,381)
Service rendered to related party
Moser Baer Engineering and Construction Limited - - - 47,781,090 47,781,090
( - ) ( - ) ( - ) (66,268,515) (66,268,515)
Expenses incurred/ payment made by the company on behalf of related party
Moser Baer Engineering and Construction Limited - - - - -
( - ) ( - ) ( - ) (321,307) (321,307)
Reimbursement/ recovery of expenses/ services
Moser Baer Engineering and Construction Limited - - - 36,595,597 36,595,597
( - ) ( - ) ( - ) (53,661,854) (53,661,854)
Provision of diminution of long-term investment
Global Data Media FZ LLC 30,438,813 - - - 30,438,813
( - ) ( - ) ( - ) ( - ) ( - )
Lease rent charged to related party
Moser Baer Engineering and Construction Limited - - - 4,728,780 4,728,780
( - ) ( - ) ( - ) (6,305,040) (6,305,040)
Issue of equity shares
Deepak Puri - 300,000,000 - - 300,000,000
( - ) ( - ) ( - ) ( - ) ( - )
Issue of preference shares by subsidiary
Deepak Puri - - - ( - ) -
( - ) (10,000,000) ( - ) (10,000,000) ( - )
Directors remuneration
Deepak Puri - 25,185,077 - -
( - ) (4,800,000) ( - ) ( - )
Nita Puri - 3,187,503 - - 28,372,580
( - ) (4,250,000) ( - ) ( - ) (9,050,000)
Outstanding receivables
In respect of sales of goods or services rendered
Global Data Media FZ LLC 110,494,136 - - -
(237,588,923) ( - ) ( - ) ( - )
142 143
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
Particulars Associates Key Moser Baer Enterprises Total management Trust over which key
personnel management personnel
exercise significant influence
Moser Baer Clean Energy Limited - - - -
( - ) ( - ) ( - ) (67,275)
Moser Baer Engineering and Construction Limited - - - 929,687,509 1,040,181,645
( - ) ( - ) ( - ) (944,340,709) (1,181,996,907)
In respect of loans & advances
Moser Baer Engineering and Construction Limited - - - - -
( - ) ( - ) ( - ) (35,974,260) (35,974,260)
In respect of managerial remuneration
Deepak Puri - 966 - -
( - ) (16,081,627) ( - ) ( - )
Ratul Puri - 1,147,902 - - 1,148,868
( - ) (1,147,902) ( - ) ( - ) (17,229,529)
Outstanding payables
In respect of purchase of goods
Sapphire Industrial Infrastructure Private Limited - - - 4,397,434
( - ) ( - ) ( - ) (4,397,434)
Moser Baer Energy & Development Limited - - - 39,477,368 43,874,802
( - ) ( - ) ( - ) (39,477,368) (43,874,802)
In respect of advance received from customer - - 9,927 - 9,927
( - ) ( - ) (9,927) ( - ) (9,927)
In respect of security deposit received for lease
Moser Baer Engineering and Construction Limited - - - 12,000,000 12,000,000
( - ) ( - ) ( - ) (12,000,000) (12,000,000)
In respect of managerial remuneration
Nita Puri - 414,182 - - 414,182
( - ) (450,432) ( - ) ( - ) (450,432)
43 Loss per share
Particulars Period ended Year ended December 31, 2013 March 31, 2013
(a) Weighted average number of equity shares for basic and diluted earningper share 185,578,831 168,306,104
(b) Net loss after tax available for equity shareholders (6,955,644,158) (9,162,320,008)
Loss per share (face value per share Rs. 10 each)
- Basic (37.48) (54.44)
- Diluted (37.48) (54.44)
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
(c) The impact on the loss of the Group for the period ended December 31, 2013 and the basic and diluted earnings per share had the Group followed the fair value method of accounting for stock options is set out below:
Particulars Period ended Year ended December 31, 2013 March 31, 2013
Loss after tax as per statement of profit and loss (a) (6,955,644,158) (9,162,320,008)
Less: (Reversal)/ charge of employee stock compensation expenses
as per fair value method* (50,648,215) 11,581,915
Loss after tax recomputed for recognition of employee stock compensation (6,904,995,943) (9,173,901,923)
Expenses under fair value method (b)
Loss per share based on earnings as per (a) above:
- Basic (37.48) (54.44)
- Diluted (37.48) (54.44)
Loss per share based on earnings as per (b) above:
- Basic (37.21) (54.51)
- Diluted (37.21) (54.51)
*Fair values used for above computations have been calculated by taking into account the weighted average vesting period of the options.
(d) (i) Moser Baer Employees Stock Option Plan (ESOP) 2004, Director’s Stock Option Plan (DSOP) 2005 and Moser Baer India Limited Stock Option Plan 2009*
* No options granted during the period.
44 Segmental information
Identification of segments
Primary segments
The Group has considered business segments as the primary segment for disclosure according to the nature of the products sold, with each segment representing a strategic business unit. The Group has accordingly identified two primary business segments, i.e. ‘storage media products’ (compact discs, magnetic discs and other storage media products), ‘solar products’ (photovoltaic cells, modules and thin films) and ‘other operations’.
Secondary segments
The activities of the Group are also geographically spread over the Indian territories and exports to other countries, primarily in Europe and USA.
The accounting principles consistently used in preparation of the financial statements are also consistently applied to record income and expenditure for individual segments. These are stated in the note on significant accounting policies.
Unallocated items
Certain expenses such as depreciation (other than depreciation on plant and machinery) and corporate expenses, which form a significant component of total expenses, are not specifically allocable to specific segments as the underlying services are used interchangeably. The Group believes that it is not practical to provide segment disclosure relating to those costs and expenses and accordingly these expenses are separately disclosed as “unallocated” and directly charged against total income.
Fixed assets used in the Group’s business and liabilities accounted for, which are not directly associated to any reportable segment are separately disclosed as ‘unallocated’.
144 145
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
(a) Information about primary business segments
Financial information about business segments for the nine months period ended December 31, 2013 is as follows:
Particulars Storage media Solar Other Inter segment Totalproducts products operations eliminations
Revenue:
External 8,567,678,644 2,258,626,641 616,688,740 - 11,442,994,025
Inter-segment 1,256,938,561 357,759,820 401,551,867 (2,016,250,248) -
Total revenue 9,824,617,205 2,616,386,461 1,018,240,607 (2,016,250,248) 11,442,994,025
Result:
Segment results(1,697,051,445) (2,016,229,567) (174,404,515) - (3,887,685,527)
Interest expense (net of interest income) 3,128,747,704
Unallocated corporate expenses (net of other income) (13,254,910)
Loss before tax and exceptional items (7,003,178,321)
Exceptional items 47,656,587
Loss before tax (6,955,521,734)
Provision for taxation 122,424
Loss after tax (6,955,644,158)
Share in loss of associates -
Net loss for the period (6,955,644,158)
Other information:
Segment assets 18,106,113,427 18,563,825,802 9,876,162,232 (15,060,321,848) 31,485,779,613
Unallocated corporate assets 2,981,523,087
Total assets 34,467,302,700
Segment liabilities 4,202,774,872 4,782,765,542 8,191,519,410 (15,051,423,170) 2,125,636,654
Unallocated corporate liabilities 48,915,752,393
Total liabilities 51,041,389,047
Capital expenditure 4,596,392 323,062,922 5,580,876 - 333,240,190
Unallocated capital expenditure 5,480,535
Total capital expenditure 338,720,725
Depreciation, amortisation and impairment 1,469,985,630 2,076,843,620 242,763,006 (45,790,186) 3,743,802,070
Unallocated depreciation, amortisation and impairment 85,751,929
Total depreciation, amortisation and impairment 3,829,553,999
Financial information about business segments for the year ended March 31, 2013 is as follows:
Particulars Storage media Solar Other Inter segment Totalproducts products operations eliminations
Revenue:
External 13,430,833,285 2,211,502,315 1,153,056,880 - 16,795,392,480
Inter-segment 1,975,579,868 503,789,538 1,042,007,757 (3,521,377,163) -
Total revenue 15,406,413,153 2,715,291,853 2,195,064,637 (3,521,377,163) 16,795,392,480
Result:
Segment results (2,731,754,072) (1,817,327,570) 40,117,742 - (4,508,963,900)
Interest expense (net of interest income) 3,870,460,402
Unallocated corporate expenses (net of other income) 422,529,924
Loss before tax & exceptional items (8,801,954,226)
Exceptional items (360,134,268)
Loss before tax (9,162,088,494)
Provision for taxation 231,514
Loss after tax (9,162,320,008)
Share in loss of associates -
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
(c) The impact on the loss of the Group for the period ended December 31, 2013 and the basic and diluted earnings per share had the Group followed the fair value method of accounting for stock options is set out below:
Particulars Period ended Year ended December 31, 2013 March 31, 2013
Loss after tax as per statement of profit and loss (a) (6,955,644,158) (9,162,320,008)
Less: (Reversal)/ charge of employee stock compensation expenses
as per fair value method* (50,648,215) 11,581,915
Loss after tax recomputed for recognition of employee stock compensation (6,904,995,943) (9,173,901,923)
Expenses under fair value method (b)
Loss per share based on earnings as per (a) above:
- Basic (37.48) (54.44)
- Diluted (37.48) (54.44)
Loss per share based on earnings as per (b) above:
- Basic (37.21) (54.51)
- Diluted (37.21) (54.51)
*Fair values used for above computations have been calculated by taking into account the weighted average vesting period of the options.
(d) (i) Moser Baer Employees Stock Option Plan (ESOP) 2004, Director’s Stock Option Plan (DSOP) 2005 and Moser Baer India Limited Stock Option Plan 2009*
* No options granted during the period.
44 Segmental information
Identification of segments
Primary segments
The Group has considered business segments as the primary segment for disclosure according to the nature of the products sold, with each segment representing a strategic business unit. The Group has accordingly identified two primary business segments, i.e. ‘storage media products’ (compact discs, magnetic discs and other storage media products), ‘solar products’ (photovoltaic cells, modules and thin films) and ‘other operations’.
Secondary segments
The activities of the Group are also geographically spread over the Indian territories and exports to other countries, primarily in Europe and USA.
The accounting principles consistently used in preparation of the financial statements are also consistently applied to record income and expenditure for individual segments. These are stated in the note on significant accounting policies.
Unallocated items
Certain expenses such as depreciation (other than depreciation on plant and machinery) and corporate expenses, which form a significant component of total expenses, are not specifically allocable to specific segments as the underlying services are used interchangeably. The Group believes that it is not practical to provide segment disclosure relating to those costs and expenses and accordingly these expenses are separately disclosed as “unallocated” and directly charged against total income.
Fixed assets used in the Group’s business and liabilities accounted for, which are not directly associated to any reportable segment are separately disclosed as ‘unallocated’.
144 145
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
(a) Information about primary business segments
Financial information about business segments for the nine months period ended December 31, 2013 is as follows:
Particulars Storage media Solar Other Inter segment Totalproducts products operations eliminations
Revenue:
External 8,567,678,644 2,258,626,641 616,688,740 - 11,442,994,025
Inter-segment 1,256,938,561 357,759,820 401,551,867 (2,016,250,248) -
Total revenue 9,824,617,205 2,616,386,461 1,018,240,607 (2,016,250,248) 11,442,994,025
Result:
Segment results(1,697,051,445) (2,016,229,567) (174,404,515) - (3,887,685,527)
Interest expense (net of interest income) 3,128,747,704
Unallocated corporate expenses (net of other income) (13,254,910)
Loss before tax and exceptional items (7,003,178,321)
Exceptional items 47,656,587
Loss before tax (6,955,521,734)
Provision for taxation 122,424
Loss after tax (6,955,644,158)
Share in loss of associates -
Net loss for the period (6,955,644,158)
Other information:
Segment assets 18,106,113,427 18,563,825,802 9,876,162,232 (15,060,321,848) 31,485,779,613
Unallocated corporate assets 2,981,523,087
Total assets 34,467,302,700
Segment liabilities 4,202,774,872 4,782,765,542 8,191,519,410 (15,051,423,170) 2,125,636,654
Unallocated corporate liabilities 48,915,752,393
Total liabilities 51,041,389,047
Capital expenditure 4,596,392 323,062,922 5,580,876 - 333,240,190
Unallocated capital expenditure 5,480,535
Total capital expenditure 338,720,725
Depreciation, amortisation and impairment 1,469,985,630 2,076,843,620 242,763,006 (45,790,186) 3,743,802,070
Unallocated depreciation, amortisation and impairment 85,751,929
Total depreciation, amortisation and impairment 3,829,553,999
Financial information about business segments for the year ended March 31, 2013 is as follows:
Particulars Storage media Solar Other Inter segment Totalproducts products operations eliminations
Revenue:
External 13,430,833,285 2,211,502,315 1,153,056,880 - 16,795,392,480
Inter-segment 1,975,579,868 503,789,538 1,042,007,757 (3,521,377,163) -
Total revenue 15,406,413,153 2,715,291,853 2,195,064,637 (3,521,377,163) 16,795,392,480
Result:
Segment results (2,731,754,072) (1,817,327,570) 40,117,742 - (4,508,963,900)
Interest expense (net of interest income) 3,870,460,402
Unallocated corporate expenses (net of other income) 422,529,924
Loss before tax & exceptional items (8,801,954,226)
Exceptional items (360,134,268)
Loss before tax (9,162,088,494)
Provision for taxation 231,514
Loss after tax (9,162,320,008)
Share in loss of associates -
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
Particulars Storage media Solar Other Inter segment Totalproducts products operations eliminations
Net loss for the year (9,162,320,008)
Other information:
Segment assets 20,717,893,652 20,086,774,807 10,329,283,105 (14,572,462,015) 36,561,489,549
Unallocated corporate assets 3,056,205,370
Total assets 39,617,694,919
Segment liabilities 4,614,312,782 4,552,382,231 10,285,992,269 (14,630,950,471) 4,821,736,811
Unallocated corporate liabilities 43,820,039,259
Total liabilities 48,641,776,070
Capital expenditure 126,424,920 153,723,528 173,029,475 - 453,177,923
Unallocated capital expenditure -
Total capital expenditure 453,177,923
Depreciation, amortisation and impairment 2,823,701,269 981,166,607 357,965,569 (83,569,403) 4,079,264,042
Unallocated depreciation, amortisation and impairment 7,569,181
Total depreciation, amortisation and impairment 4,086,833,223
(b) Information about secondary geographical segments:
Sales revenue by geographical market Period ended Year ended December 31, 2013 March 31, 2013
India 4,316,165,663 6,582,120,900
Outside India 7,126,828,362 10,276,276,620
Total 11,442,994,025 16,858,397,520
Assets and additions to tangible Addition to fixed assets and intangible assets Carrying amount of segment assets and intangible fixed assets by geographical area Period ended Year ended Period ended Year ended
December 31, 2013 March 31, 2013 December 31, 2013 March 31, 2013
India 335,792,277 452,866,260 33,145,390,479 37,269,172,487
Outside India 2,928,448 311,663 1,321,912,221 2,348,522,432
Total segment assets 338,720,725 453,177,923 34,467,302,700 39,617,694,919
45 Employees’ benefits
The group has classified the various benefits provided to employees as under:
(I) Defined contribution plans
During the period, the group has recognised the following amounts in the statement of profit and loss:
Particulars Period ended Year ended December 31, 2013 March 31, 2013
(i) Employers’ contribution to provident fund * 44,962,583 65,190,163
(ii) State Plans
Employers’ Contribution to Employee’s State Insurance Act, 1948 * 3,883,098 11,413,088
Employers’ Contribution to Employee’s Pension Plan, 1995 * 34,458,097 28,015,363
* Included in Contribution to Provident and Other Funds under employee benefit expenses
(II) Defined benefit plans and other long-term employee benefits
a) Contribution to gratuity - Life Insurance Corporation of India
b) Compensated absences
c) Pension scheme for overseas subsidiaries
146 147
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
(i) In accordance with Accounting Standard 15 (revised 2005) - ‘Employee Benefits’ (AS - 15), actuarial valuation was done in respect of the aforesaid defined benefit plans based on the following assumptions:
Particulars Compensated absences (unfunded) Employee’s gratuity fund
Period ended Year ended Period ended Year endedDecember 31, 2013 March 31, 2013 December 31, 2013 March 31, 2013
Discount rate (per annum) 8.95% 8.00% 8.95% 8.00%
Rate of increase in compensation levels 10.00% 10.00% 10.00% 10.00%
Rate of return on plan assets - - 9.40% 9.40%
Expected average remaining working
lives of employees (years) 4.96 7.43 4.96 7.43
Particulars Pension fund
Period ended Year endedDecember 31, 2013 March 31, 2013
Discount rate (per annum) - 3.40%
Rate of increase in compensation levels - 2.50%
Rate of return on plan assets - 3.40%
Expected average remaining working lives of employees (years) - 14.00
(ii) Changes in the present value of defined benefit obligation
Particulars Compensated absences (unfunded) Employee’s gratuity fund
Period ended Year ended Period ended Year endedDecember 31, 2013 March 31, 2013 December 31, 2013 March 31, 2013
Present value of obligation at the beginning of the period/ year 95,739,990 100,107,719 296,034,011 265,190,318
Interest cost 6,095,718 9,447,111 17,976,883 22,438,098
Current service cost 11,844,676 18,361,863 23,472,500 29,017,559
Benefits paid/ transferred (13,030,252) (16,181,241) (42,507,360) (50,514,622)
Equitable interest transferred (528,832) - (3,353,062) -
Acquisition/ business combination/ divestiture - - (18,762) -
Actuarial (gain)/ loss on obligations (7,822,378) (15,995,462) (15,245,435) 29,902,658
Present value of obligation at the end of the period/ year 92,298,922 95,739,990 276,358,775 296,034,011
Changes in the present value of defined benefit obligation
Particulars Pension fund
Period ended Year ended December 31, 2013 March 31, 2013
Present value of obligation at the beginning of the period/ year 359,232,112 261,168,050
Interest cost - 13,656,075
Current service cost 16,807,177 15,546,916
Benefits paid (376,039,289) (700,312)
Actuarial loss on obligations - 69,561,383
Present value of obligation at the end of the period/ year - 359,232,112
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
Particulars Storage media Solar Other Inter segment Totalproducts products operations eliminations
Net loss for the year (9,162,320,008)
Other information:
Segment assets 20,717,893,652 20,086,774,807 10,329,283,105 (14,572,462,015) 36,561,489,549
Unallocated corporate assets 3,056,205,370
Total assets 39,617,694,919
Segment liabilities 4,614,312,782 4,552,382,231 10,285,992,269 (14,630,950,471) 4,821,736,811
Unallocated corporate liabilities 43,820,039,259
Total liabilities 48,641,776,070
Capital expenditure 126,424,920 153,723,528 173,029,475 - 453,177,923
Unallocated capital expenditure -
Total capital expenditure 453,177,923
Depreciation, amortisation and impairment 2,823,701,269 981,166,607 357,965,569 (83,569,403) 4,079,264,042
Unallocated depreciation, amortisation and impairment 7,569,181
Total depreciation, amortisation and impairment 4,086,833,223
(b) Information about secondary geographical segments:
Sales revenue by geographical market Period ended Year ended December 31, 2013 March 31, 2013
India 4,316,165,663 6,582,120,900
Outside India 7,126,828,362 10,276,276,620
Total 11,442,994,025 16,858,397,520
Assets and additions to tangible Addition to fixed assets and intangible assets Carrying amount of segment assets and intangible fixed assets by geographical area Period ended Year ended Period ended Year ended
December 31, 2013 March 31, 2013 December 31, 2013 March 31, 2013
India 335,792,277 452,866,260 33,145,390,479 37,269,172,487
Outside India 2,928,448 311,663 1,321,912,221 2,348,522,432
Total segment assets 338,720,725 453,177,923 34,467,302,700 39,617,694,919
45 Employees’ benefits
The group has classified the various benefits provided to employees as under:
(I) Defined contribution plans
During the period, the group has recognised the following amounts in the statement of profit and loss:
Particulars Period ended Year ended December 31, 2013 March 31, 2013
(i) Employers’ contribution to provident fund * 44,962,583 65,190,163
(ii) State Plans
Employers’ Contribution to Employee’s State Insurance Act, 1948 * 3,883,098 11,413,088
Employers’ Contribution to Employee’s Pension Plan, 1995 * 34,458,097 28,015,363
* Included in Contribution to Provident and Other Funds under employee benefit expenses
(II) Defined benefit plans and other long-term employee benefits
a) Contribution to gratuity - Life Insurance Corporation of India
b) Compensated absences
c) Pension scheme for overseas subsidiaries
146 147
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
(i) In accordance with Accounting Standard 15 (revised 2005) - ‘Employee Benefits’ (AS - 15), actuarial valuation was done in respect of the aforesaid defined benefit plans based on the following assumptions:
Particulars Compensated absences (unfunded) Employee’s gratuity fund
Period ended Year ended Period ended Year endedDecember 31, 2013 March 31, 2013 December 31, 2013 March 31, 2013
Discount rate (per annum) 8.95% 8.00% 8.95% 8.00%
Rate of increase in compensation levels 10.00% 10.00% 10.00% 10.00%
Rate of return on plan assets - - 9.40% 9.40%
Expected average remaining working
lives of employees (years) 4.96 7.43 4.96 7.43
Particulars Pension fund
Period ended Year endedDecember 31, 2013 March 31, 2013
Discount rate (per annum) - 3.40%
Rate of increase in compensation levels - 2.50%
Rate of return on plan assets - 3.40%
Expected average remaining working lives of employees (years) - 14.00
(ii) Changes in the present value of defined benefit obligation
Particulars Compensated absences (unfunded) Employee’s gratuity fund
Period ended Year ended Period ended Year endedDecember 31, 2013 March 31, 2013 December 31, 2013 March 31, 2013
Present value of obligation at the beginning of the period/ year 95,739,990 100,107,719 296,034,011 265,190,318
Interest cost 6,095,718 9,447,111 17,976,883 22,438,098
Current service cost 11,844,676 18,361,863 23,472,500 29,017,559
Benefits paid/ transferred (13,030,252) (16,181,241) (42,507,360) (50,514,622)
Equitable interest transferred (528,832) - (3,353,062) -
Acquisition/ business combination/ divestiture - - (18,762) -
Actuarial (gain)/ loss on obligations (7,822,378) (15,995,462) (15,245,435) 29,902,658
Present value of obligation at the end of the period/ year 92,298,922 95,739,990 276,358,775 296,034,011
Changes in the present value of defined benefit obligation
Particulars Pension fund
Period ended Year ended December 31, 2013 March 31, 2013
Present value of obligation at the beginning of the period/ year 359,232,112 261,168,050
Interest cost - 13,656,075
Current service cost 16,807,177 15,546,916
Benefits paid (376,039,289) (700,312)
Actuarial loss on obligations - 69,561,383
Present value of obligation at the end of the period/ year - 359,232,112
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
(iii) Changes in the fair value of plan assets
Particulars Employee’s gratuity fund Pension fund
Period ended Year ended Period ended Year endedDecember 31, 2013 March 31, 2013 December 31, 2013 March 31, 2013
Fair value of plan assets at the beginning of the period/ year 120,497,355 141,760,881 337,688,261 242,095,739
Expected return on plan assets 7,254,265 11,790,910 - 13,866,168
Actuarial losses - 345,061 - 60,016,697
Contributions 12,871,824 (1,783,402) - 26,401,744
Benefits paid (43,872,152) (31,616,095) - (700,312)
Additional charge/ acquisition/ business combination (3,371,824) - - (3,991,775)
Fair value of plan assets at the end of the period/ year 93,379,468 120,497,355 337,688,261 337,688,261
(iv) Expenses recognised in the statement of profit and loss
Particulars Compensated absences (unfunded)
Period ended Year ended December 31, 2013 March 31, 2013
Current service cost 11,844,676 18,361,863
Past service cost - -
Interest cost 6,095,718 9,447,111
Expected return on plan assets - -
Additional charges - -
Net actuarial gain recognised (7,822,378) (15,995,462)
Effect of curtailments - -
Total expenses recognised in the statement of profit and loss* 10,118,016 11,813,512
Particulars Gratuity (funded)
Period ended Year ended December 31, 2013 March 31, 2013
Current service cost 22,964,320 29,017,559
Past service cost - -
Interest cost 17,664,926 22,438,098
Expected return on plan assets (7,089,842) (11,790,910)
Additional charges - -
Net actuarial (gain)/ loss recognised (15,245,435) 29,557,596
Effect of curtailments - -
Total expenses recognised in the statement of profit and loss** 18,293,969 69,222,343
* Included in personnel expenses
** Included in contribution to provident and other funds
148 149
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
Particulars Pension fund
Period ended Year ended December 31, 2013 March 31, 2013
Current service cost 16,807,177 15,546,916
Past service cost - -
Interest cost - 13,656,074
Expected return on plan assets - (13,866,168)
Additional charges - 3,991,776
Net actuarial loss recognised - 51,434,869
Effect of curtailments - -
Total expenses recognised in the statement of profit and loss 16,807,177 70,763,467
(v) The present value of the defined benefit obligation, the fair value of the plan assets and the surplus or deficit in the plan; and experience adjustments arising on the plan liabilities and the plan assets in respect of gratuity for 5 years is as follows:
Particulars Employee’s gratuity fund (funded)
Period ended Year ended Year ended Year ended Year endedDecember 31, 2013 March 31, 2013 March 31, 2012 March 31, 2011 March 31, 2010
Present value of defined benefit obligation 276,358,774 296,034,011 249,105,439 229,795,971 210,299,190
Fair value of plan assets 93,379,468 119,497,355 140,760,881 149,076,982 151,341,465
Deficit in the plan assets (178,683,928) (174,079,049) (108,344,558) (80,718,989) (58,957,725)
Experience adjustments on plan liabilities (6,543,053) 27,980,085 (16,291,944) (270,416) (194,530)
This is the seventh year of adoption of AS - 15 and accordingly five years figures have been disclosed as required by Para 120(n) of AS - 15.
In respect of the Employee’s Gratuity Fund and Pension Fund administered by Life Insurance Corporation of India and Interpolis respectively, constitution of Plan Assets is not readily available.
The expected contribution on account of gratuity for the period ended December 31, 2013 can’t be ascertained.
46 Impairment of assets
The management of Helios Photo Voltaic Limited (HVPL) (formerly known as Moser Baer Photo Voltaic Limited) and Moser Baer Solar Limited (MBSL) (both subsidiaries of the Company) had obtained business valuations as of December 31, 2013 by an independent valuer, using the discounted cash flows method with significant underlying assumptions, including external market conditions of solar market, successful implementation of CDR Scheme, competition, ability of new technology to perform, regulatory benefits.
Based on the business valuation, the management has concluded that no impairment to the carrying values of underlying fixed assets of HPVL aggregating to Rs. 2,917,651,429 needs to be recorded in the consolidated financial statements for the period ended December 31, 2013. In MBSL, an impairment of Rs. 1,138,760,000 to the carrying values of underlying fixed assets aggregating to Rs. 8,974,029,736 has been recorded in the consolidated financial statements for the period ended December 31, 2013.
47 Foreign currency convertible bonds
(a) Restructuring
The outstanding foreign currency convertible bonds (FCCBs) aggregating to principal value of USD 88,500,000 (equivalent to Rs 5,471,955,000) matured for redemption on June 21, 2012, which have since been claimed by the trustee of the bondholders. The Company has received approval from the Reserve Bank of India to extend the redemption date of bonds and is in discussions with the bondholders, through the Trustee, to re-structure the terms of these bonds. Pending acceptance by the bondholders and approval from the concerned regulatory authorities of the terms proposed by the Company, the financial obligations of the Company, other than premium on redemption, are presently not reasonably determinable, and hence have not been provided for. The petition under section 434 of the Companies Act, 1956, filed by the trustee on behalf of certain bondholders with the Hon’ble High Court of Delhi, which has since been admitted, and continues to be sub-judice.
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
(iii) Changes in the fair value of plan assets
Particulars Employee’s gratuity fund Pension fund
Period ended Year ended Period ended Year endedDecember 31, 2013 March 31, 2013 December 31, 2013 March 31, 2013
Fair value of plan assets at the beginning of the period/ year 120,497,355 141,760,881 337,688,261 242,095,739
Expected return on plan assets 7,254,265 11,790,910 - 13,866,168
Actuarial losses - 345,061 - 60,016,697
Contributions 12,871,824 (1,783,402) - 26,401,744
Benefits paid (43,872,152) (31,616,095) - (700,312)
Additional charge/ acquisition/ business combination (3,371,824) - - (3,991,775)
Fair value of plan assets at the end of the period/ year 93,379,468 120,497,355 337,688,261 337,688,261
(iv) Expenses recognised in the statement of profit and loss
Particulars Compensated absences (unfunded)
Period ended Year ended December 31, 2013 March 31, 2013
Current service cost 11,844,676 18,361,863
Past service cost - -
Interest cost 6,095,718 9,447,111
Expected return on plan assets - -
Additional charges - -
Net actuarial gain recognised (7,822,378) (15,995,462)
Effect of curtailments - -
Total expenses recognised in the statement of profit and loss* 10,118,016 11,813,512
Particulars Gratuity (funded)
Period ended Year ended December 31, 2013 March 31, 2013
Current service cost 22,964,320 29,017,559
Past service cost - -
Interest cost 17,664,926 22,438,098
Expected return on plan assets (7,089,842) (11,790,910)
Additional charges - -
Net actuarial (gain)/ loss recognised (15,245,435) 29,557,596
Effect of curtailments - -
Total expenses recognised in the statement of profit and loss** 18,293,969 69,222,343
* Included in personnel expenses
** Included in contribution to provident and other funds
148 149
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
Particulars Pension fund
Period ended Year ended December 31, 2013 March 31, 2013
Current service cost 16,807,177 15,546,916
Past service cost - -
Interest cost - 13,656,074
Expected return on plan assets - (13,866,168)
Additional charges - 3,991,776
Net actuarial loss recognised - 51,434,869
Effect of curtailments - -
Total expenses recognised in the statement of profit and loss 16,807,177 70,763,467
(v) The present value of the defined benefit obligation, the fair value of the plan assets and the surplus or deficit in the plan; and experience adjustments arising on the plan liabilities and the plan assets in respect of gratuity for 5 years is as follows:
Particulars Employee’s gratuity fund (funded)
Period ended Year ended Year ended Year ended Year endedDecember 31, 2013 March 31, 2013 March 31, 2012 March 31, 2011 March 31, 2010
Present value of defined benefit obligation 276,358,774 296,034,011 249,105,439 229,795,971 210,299,190
Fair value of plan assets 93,379,468 119,497,355 140,760,881 149,076,982 151,341,465
Deficit in the plan assets (178,683,928) (174,079,049) (108,344,558) (80,718,989) (58,957,725)
Experience adjustments on plan liabilities (6,543,053) 27,980,085 (16,291,944) (270,416) (194,530)
This is the seventh year of adoption of AS - 15 and accordingly five years figures have been disclosed as required by Para 120(n) of AS - 15.
In respect of the Employee’s Gratuity Fund and Pension Fund administered by Life Insurance Corporation of India and Interpolis respectively, constitution of Plan Assets is not readily available.
The expected contribution on account of gratuity for the period ended December 31, 2013 can’t be ascertained.
46 Impairment of assets
The management of Helios Photo Voltaic Limited (HVPL) (formerly known as Moser Baer Photo Voltaic Limited) and Moser Baer Solar Limited (MBSL) (both subsidiaries of the Company) had obtained business valuations as of December 31, 2013 by an independent valuer, using the discounted cash flows method with significant underlying assumptions, including external market conditions of solar market, successful implementation of CDR Scheme, competition, ability of new technology to perform, regulatory benefits.
Based on the business valuation, the management has concluded that no impairment to the carrying values of underlying fixed assets of HPVL aggregating to Rs. 2,917,651,429 needs to be recorded in the consolidated financial statements for the period ended December 31, 2013. In MBSL, an impairment of Rs. 1,138,760,000 to the carrying values of underlying fixed assets aggregating to Rs. 8,974,029,736 has been recorded in the consolidated financial statements for the period ended December 31, 2013.
47 Foreign currency convertible bonds
(a) Restructuring
The outstanding foreign currency convertible bonds (FCCBs) aggregating to principal value of USD 88,500,000 (equivalent to Rs 5,471,955,000) matured for redemption on June 21, 2012, which have since been claimed by the trustee of the bondholders. The Company has received approval from the Reserve Bank of India to extend the redemption date of bonds and is in discussions with the bondholders, through the Trustee, to re-structure the terms of these bonds. Pending acceptance by the bondholders and approval from the concerned regulatory authorities of the terms proposed by the Company, the financial obligations of the Company, other than premium on redemption, are presently not reasonably determinable, and hence have not been provided for. The petition under section 434 of the Companies Act, 1956, filed by the trustee on behalf of certain bondholders with the Hon’ble High Court of Delhi, which has since been admitted, and continues to be sub-judice.
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
(b) The utilisation of the balance proceeds of zero coupon foreign currency convertible bonds is as under:
Particulars Period ended December 31, 2013 Year ended March 31, 2013
USD INR * USD INR *
Funds available at the beginning of the period/ year 142,709 7,746,966 147,911 7,525,709
Bank charges 3,608 221,025 5,202 284,952
Unutilised issue proceeds # 139,101 8,597,861 142,709 7,746,966
# Reinstated as at period/ year end rate
* Net of foreign exchange gain of Rs. 1,071,920 for the period ended December 31, 2013 and loss of Rs. 506,209 for the year ended March 31, 2013.
(c) Movement in provision for premium on redemption of foreign currency convertible bonds :
Particulars Period ended Year ended December 31, 2013 March 31, 2013
Opening balance 2,399,718,659 1,793,150,173
Add: Provision for the period/ year 776,861,039 606,568,486
3,176,579,698 2,399,718,659
Less: Amount disclosed as other current liabilities (refer note 14) 2,032,527,592 1,784,830,756
Balance in short-term provisions (refer note 15) 1,144,052,106 614,887,903
Premium payable on redemption of foreign currency convertible bonds accrued up to December 31, 2013 calculated on prorata basis Rs. 3,176,579,698 (previous year Rs. 2,399,718,659) has been fully provided for and charged to securities premium account. In the event that the conversion option is exercised by the holders of foreign currency convertible bonds in the future, the amount of premium charged to the securities premium account shall be written back to the securities premium account.
48 Pursuant to the notification issued by The Ministry of Corporate Affairs dated May 11, 2011 read with the notification issued on March 31, 2009, the MBIL has chosen to avail the option to accumulate exchange difference arising on long-term foreign currency monetary items in the “Foreign Currency Monetary Item Translation Difference Account”. Amount remaining to be amortised in this account is as under:
Particulars Period ended Year ended December 31, 2013 March 31, 2013
Amortisation charged to statement of profit and loss - 515,366,123
49 During the year 2010-11, Moser Baer Solar Limited had made an application under “Special Incentive Package Plan (SIPS)” issued by the Ministry of Communication and Information Technology to encourage investments for setting up semiconductor fabrication and other micro and nano technology manufacturing industries in India. Two subsidiaries in solar segment namely - Moser Baer Solar Limited and Helios Photo Voltaic Limited (formerly known as Moser Baer Photo Voltaic Limited) may be eligible for grant of financial incentives equivalent to 20% of the eligible current and future capital expenditure as and when approved by the Ministry.
50 Disclosures pursuant to Accounting Standard (AS) 7 “Construction Contracts”
Particulars Period ended Year ended December 31, 2013 March 31, 2013
Contract revenue recognised during the period/ year 347,317,518 52,380,865
Aggregate amount of contract costs incurred for all contracts in progress at the period/ year end 319,693,886 57,863,867
Recognised profits (less recognised losses) for all contracts in progress at the period/ year end 27,623,631 (8,241,563)
Amount of advances received for contracts in progress at the period/ year end 5,118,560 -
Amount of retentions for contracts in progress at the period/ year end 88,824,259 -
150 151
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
51 Disclosure relating to dues outstanding to micro, small and medium enterprises as defined in Micro, Small and Medium Enterprises Act, 2006
Particulars Period ended Year ended December 31, 2013 March 31, 2013
(a) Amount remaining unpaid to micro, small and medium enterprises at the end of period/ year
Principal amount 72,777,339 70,811,218
Interest thereon 38,287,822 27,919,827
Total 111,065,161 98,731,045
(b) Amount of payments made to micro, small and medium enterprises beyond the appointed date during the period/ year
Principal amount 180,969,764 198,245,821
Interest actually paid u/s 16 of the Act. - -
Total 180,969,764 198,245,821
(c) Interest accrued (including interest u/s 16 of the Act) and remaining unpaid at the end of the period/ year
Interest accrued during the period/ year 10,367,997 5,985,575
Interest remaining unpaid during the period/ year 38,287,824 27,919,827
52 Going concern
The Group has incurred loss of Rs. 6,955,644,158 (previous year loss Rs. 9,162,320,008) during the nine months period ended December 31, 2013, which along with the accumulated losses as of December 31, 2013 has completely eroded its net worth as on December 31, 2013.
The Company’s corporate debt restructuring scheme to re-structure the borrowings from secured lenders has already been approved and the management is confident of re-structuring the FCCB obligation as described in note 47(a), in the terms proposed by the Company. Further, CDR of two of its significant subsidiaries in the solar business has also been approved and these subsidiaries has plans to implement new technology which will inter-alia further increase the efficiency of the solar panels produced. Management is also hopeful that favourable market conditions and government regulations will help in strengthening the operations of these subsidiaries. The management of Moser Baer Entertainment Limited is also in the process of implementing new business plans to improve its operational performance significantly.
Pending the outcome of aforementioned discussions with the bondholders and the related litigation, successful implementation of corporate debt restructuring in terms as proposed by the entities, favourable market conditions in solar business, government regulations, ability of new technology to perform, successful implementation of business plans, which are materially uncertain, the financial statements of the Group have been prepared on going concern basis.
53 The Company changed its financial year from March 31 to December 31 and consequently, current financial year consist of nine months period from April 1, 2013 to December 31, 2013. Accordingly, current financial year figures are not comparable with those of the previous year.
54 One subsidiary company was earlier known as ‘Moser Baer Photo Voltaic Limited’. Its name has been changed to ‘Helios Photo Voltaic Limited’ on February 21, 2014 and a fresh certificate of Incorporation Consequent upon Change of Name was issued by Registrar of Companies, National Capital Territory of Delhi and Haryana.
55 Corresponding figures for the previous year have been regrouped / rearranged, wherever necessary to conform to current period classification.
For Walker, Chandiok & Co For and on behalf of the board of directors ofChartered Accountants MOSER BAER INDIA LIMITED
per Ashish Gupta Deepak Puri Nita PuriPartner Chairman and Director
Managing Director
Place: New Delhi Yogesh Mathur Minni KatariyaDate: 28 February 2014 Group CFO Head Legal and
Company Secretary
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
(b) The utilisation of the balance proceeds of zero coupon foreign currency convertible bonds is as under:
Particulars Period ended December 31, 2013 Year ended March 31, 2013
USD INR * USD INR *
Funds available at the beginning of the period/ year 142,709 7,746,966 147,911 7,525,709
Bank charges 3,608 221,025 5,202 284,952
Unutilised issue proceeds # 139,101 8,597,861 142,709 7,746,966
# Reinstated as at period/ year end rate
* Net of foreign exchange gain of Rs. 1,071,920 for the period ended December 31, 2013 and loss of Rs. 506,209 for the year ended March 31, 2013.
(c) Movement in provision for premium on redemption of foreign currency convertible bonds :
Particulars Period ended Year ended December 31, 2013 March 31, 2013
Opening balance 2,399,718,659 1,793,150,173
Add: Provision for the period/ year 776,861,039 606,568,486
3,176,579,698 2,399,718,659
Less: Amount disclosed as other current liabilities (refer note 14) 2,032,527,592 1,784,830,756
Balance in short-term provisions (refer note 15) 1,144,052,106 614,887,903
Premium payable on redemption of foreign currency convertible bonds accrued up to December 31, 2013 calculated on prorata basis Rs. 3,176,579,698 (previous year Rs. 2,399,718,659) has been fully provided for and charged to securities premium account. In the event that the conversion option is exercised by the holders of foreign currency convertible bonds in the future, the amount of premium charged to the securities premium account shall be written back to the securities premium account.
48 Pursuant to the notification issued by The Ministry of Corporate Affairs dated May 11, 2011 read with the notification issued on March 31, 2009, the MBIL has chosen to avail the option to accumulate exchange difference arising on long-term foreign currency monetary items in the “Foreign Currency Monetary Item Translation Difference Account”. Amount remaining to be amortised in this account is as under:
Particulars Period ended Year ended December 31, 2013 March 31, 2013
Amortisation charged to statement of profit and loss - 515,366,123
49 During the year 2010-11, Moser Baer Solar Limited had made an application under “Special Incentive Package Plan (SIPS)” issued by the Ministry of Communication and Information Technology to encourage investments for setting up semiconductor fabrication and other micro and nano technology manufacturing industries in India. Two subsidiaries in solar segment namely - Moser Baer Solar Limited and Helios Photo Voltaic Limited (formerly known as Moser Baer Photo Voltaic Limited) may be eligible for grant of financial incentives equivalent to 20% of the eligible current and future capital expenditure as and when approved by the Ministry.
50 Disclosures pursuant to Accounting Standard (AS) 7 “Construction Contracts”
Particulars Period ended Year ended December 31, 2013 March 31, 2013
Contract revenue recognised during the period/ year 347,317,518 52,380,865
Aggregate amount of contract costs incurred for all contracts in progress at the period/ year end 319,693,886 57,863,867
Recognised profits (less recognised losses) for all contracts in progress at the period/ year end 27,623,631 (8,241,563)
Amount of advances received for contracts in progress at the period/ year end 5,118,560 -
Amount of retentions for contracts in progress at the period/ year end 88,824,259 -
150 151
MOSER BAER INDIA LIMITEDSummary of significant accounting policies and other explanatory informations to the consolidated financial statements for the nine months period ended December 31, 2013(All amounts in rupees unless otherwise stated)
51 Disclosure relating to dues outstanding to micro, small and medium enterprises as defined in Micro, Small and Medium Enterprises Act, 2006
Particulars Period ended Year ended December 31, 2013 March 31, 2013
(a) Amount remaining unpaid to micro, small and medium enterprises at the end of period/ year
Principal amount 72,777,339 70,811,218
Interest thereon 38,287,822 27,919,827
Total 111,065,161 98,731,045
(b) Amount of payments made to micro, small and medium enterprises beyond the appointed date during the period/ year
Principal amount 180,969,764 198,245,821
Interest actually paid u/s 16 of the Act. - -
Total 180,969,764 198,245,821
(c) Interest accrued (including interest u/s 16 of the Act) and remaining unpaid at the end of the period/ year
Interest accrued during the period/ year 10,367,997 5,985,575
Interest remaining unpaid during the period/ year 38,287,824 27,919,827
52 Going concern
The Group has incurred loss of Rs. 6,955,644,158 (previous year loss Rs. 9,162,320,008) during the nine months period ended December 31, 2013, which along with the accumulated losses as of December 31, 2013 has completely eroded its net worth as on December 31, 2013.
The Company’s corporate debt restructuring scheme to re-structure the borrowings from secured lenders has already been approved and the management is confident of re-structuring the FCCB obligation as described in note 47(a), in the terms proposed by the Company. Further, CDR of two of its significant subsidiaries in the solar business has also been approved and these subsidiaries has plans to implement new technology which will inter-alia further increase the efficiency of the solar panels produced. Management is also hopeful that favourable market conditions and government regulations will help in strengthening the operations of these subsidiaries. The management of Moser Baer Entertainment Limited is also in the process of implementing new business plans to improve its operational performance significantly.
Pending the outcome of aforementioned discussions with the bondholders and the related litigation, successful implementation of corporate debt restructuring in terms as proposed by the entities, favourable market conditions in solar business, government regulations, ability of new technology to perform, successful implementation of business plans, which are materially uncertain, the financial statements of the Group have been prepared on going concern basis.
53 The Company changed its financial year from March 31 to December 31 and consequently, current financial year consist of nine months period from April 1, 2013 to December 31, 2013. Accordingly, current financial year figures are not comparable with those of the previous year.
54 One subsidiary company was earlier known as ‘Moser Baer Photo Voltaic Limited’. Its name has been changed to ‘Helios Photo Voltaic Limited’ on February 21, 2014 and a fresh certificate of Incorporation Consequent upon Change of Name was issued by Registrar of Companies, National Capital Territory of Delhi and Haryana.
55 Corresponding figures for the previous year have been regrouped / rearranged, wherever necessary to conform to current period classification.
For Walker, Chandiok & Co For and on behalf of the board of directors ofChartered Accountants MOSER BAER INDIA LIMITED
per Ashish Gupta Deepak Puri Nita PuriPartner Chairman and Director
Managing Director
Place: New Delhi Yogesh Mathur Minni KatariyaDate: 28 February 2014 Group CFO Head Legal and
Company Secretary
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152 153
MOSER BAER INDIA LIMITED
FINANCIAL DETAILS OF THE SUBSIDIARY COMPANIES
(All amounts in rupees, unless otherwise stated)
Name of the Subsidiary Company Particulars of Investments Nature of Investment Amount in Rs.
Peraround Limited KMG Digital Limited Class A Ordinary Shares 1,320,264
Tifton Limited Skyline Solar Inc. Shares Series A Preferred Stock 628,344
Advoferm Limited Bensimon Limited Equity Shares 1,382
Notes:
In terms of general exemption granted vide General Circular No. 2/2011 dated Feb 8, 2011 issued by Ministry of Corporate Affairs, Government of India under Section 212(8) of the Companies Act, 1956, a copies of the Balance Sheet, Statement of profit and loss account, Report of the Board of Directors’ and the Report of the Auditors’ of the subsidiary Companies have not been attached with Annual Report of the Company. The Company hereby undertakes that annual accounts of the subsidiary companies and the related detailed information shall be made available to shareholders of the holding and subsidiary companies seeking such information at any point of time. The annual accounts of the subsidiary companies shall also be kept for inspection by any shareholder in the Head Office of the Company located at 43B, Okhla Industrial Estate, Phase III, New Delhi-110020, and of the Subsidiary Companies concerned.
The company shall furnish a hard copy of details of accounts of subsidiaries to any shareholder on demand.
For and on behalf of board of directors of
MOSER BAER INDIA LIMITED
Date: February 28, 2014 Chairman and Managing DirectorPlace: New Delhi Deepak Puri
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1,3
25,9
88,3
97
1,3
20,2
64
218,0
13,4
57
183,2
03,7
56
-183,2
03,7
56
-
Pera
fly
Lim
ited
, C
ypru
s710,9
42,0
96
(720,9
01,1
27)
14,4
92,0
57
24,4
51,0
89
-(1
,931,7
15)
-(1
,931,7
15)
-
Nic
ofl
y Lim
ited
, C
ypru
s515,8
38
(8,8
55,3
84)
13,2
45
8,3
52,7
91
--
(2,3
00,4
63)
-(2
,300,4
63)
-
Pera
so
ft L
imit
ed
, C
ypru
s623,5
74
(8,9
61,4
07)
19,9
40
8,3
57,7
73
--
(2,3
20,7
17)
-(2
,320,7
17)
-
Dale
cre
st
Lim
ited
, C
ypru
s519,7
07
(8,8
35,8
79)
21,4
95
8,3
37,6
67
--
(2,3
03,4
84)
-(2
,303,4
84)
-
Cro
wn
glo
be L
imit
ed
, C
ypru
s467,5
94
(6,2
90,0
96)
1,2
81,8
83
7,1
04,3
85
--
(1,7
74,9
91)
-(1
,774,9
91)
-
Ad
mir
e E
nerg
y S
olu
tio
ns P
riva
te L
imit
ed
100,0
00
(270,0
17)
9,6
90
179,7
07
--
(31,6
03)
-(3
1,6
03)
-
Mo
ser
Baer
So
lar
Sys
tem
s P
riva
te L
imit
ed
255,0
00
30,6
54,1
16
50,9
15,7
41
20,0
06,6
25
-4,4
67,1
86
1,6
31,8
24
238,3
63
1,3
93,4
61
-
Co
mp
ete
nt
So
lar
En
erg
y P
riva
te L
imit
ed
100,0
00
(1,1
18,3
13)
66,3
80
1,0
84,6
93
--
(31,7
05)
-
(31,7
05)
-
Pri
de S
ola
r S
yste
ms P
riva
te L
imit
ed
100,0
00
(281,5
40)
13,3
36
194,8
76
--
(31,6
03)
-(3
1,6
03)
-
Valu
e S
ola
r E
nerg
y P
riva
te L
imit
ed
100,0
00
(291,5
11,8
97)
165,5
76,4
69
456,9
88,3
66
--
(26,6
30,1
53)
-(2
6,6
30,1
53)
-
Tif
ton
Lim
ited
16,1
73,7
50 (1
9,1
84,8
99)
716,7
67
3,7
27,9
16
628,3
41
-(8
19,4
82)
-(8
19,4
82)
-
OM
&T
B.V
., N
eth
erl
an
ds
1,0
02,0
83
(379,8
93,0
00)
259,3
58,1
44
--
629,3
15
(5,5
11,4
00)
-(5
,511,4
00)
-
Cu
bic
Tech
no
log
ies B
.V.
,Neth
erl
an
ds
1,2
14,2
80
(254,3
47,7
77)
210,6
72,2
28
463,8
05,7
24
-10,3
58,8
23
(291,8
78,2
59)
(139,6
68)
(291,7
38,5
91)
-
Eu
rop
ean
Op
tic M
ed
ia T
ech
no
log
y G
mb
H,
Germ
an
y111,2
63,7
50
(46,1
57,6
49)
74,8
98,4
74
9,7
92,3
73
-17,8
58,8
25
10,3
88,3
95
-10,3
88,3
95
-
Om
eg
a O
pti
cal M
ed
ia T
ech
no
log
ies,
Slo
vaki
a447,8
52
82,4
76
546,4
51
16,1
23
-91,5
05
91,5
05
-91,5
05
-
Mo
ser
Baer
Infr
astr
uctu
re a
nd
Deve
lop
ers
Lim
ited
110,0
00,0
00
(128,0
20,3
54)
216,0
50,7
77
234,0
71,1
31
--
(29,2
39,2
78)
-(2
9,2
39,2
78)
-
Mo
ser
Baer
Tech
no
log
ies,
Inc.
, U
SA
592,9
62,3
68
(589,2
60,3
41)
89,0
00,8
22
85,2
98,7
95
-43,9
61,7
71
(102,8
63,4
09)
(102,8
63,4
09)
-
Mo
ser
Baer
Ph
oto
volt
aic
In
c.
, U
SA
2,3
20,1
86
(769,0
40)
759,6
14
(791,5
32)
-39,8
02,4
88
36,1
21,7
18
-36,1
21,7
18
-
Tota
l ass
ets
Tota
l lia
bili
ties
Invest
men
tsTu
rno
ver
Pro
fit
/ (l
oss
)P
rovis
ion
fo
rP
rofi
t /
(lo
ss)
Pro
po
sed
div
iden
d
Ph
oto
Vo
ltaic
Lim
ited
152 153
MOSER BAER INDIA LIMITED
FINANCIAL DETAILS OF THE SUBSIDIARY COMPANIES
(All amounts in rupees, unless otherwise stated)
Name of the Subsidiary Company Particulars of Investments Nature of Investment Amount in Rs.
Peraround Limited KMG Digital Limited Class A Ordinary Shares 1,320,264
Tifton Limited Skyline Solar Inc. Shares Series A Preferred Stock 628,344
Advoferm Limited Bensimon Limited Equity Shares 1,382
Notes:
In terms of general exemption granted vide General Circular No. 2/2011 dated Feb 8, 2011 issued by Ministry of Corporate Affairs, Government of India under Section 212(8) of the Companies Act, 1956, a copies of the Balance Sheet, Statement of profit and loss account, Report of the Board of Directors’ and the Report of the Auditors’ of the subsidiary Companies have not been attached with Annual Report of the Company. The Company hereby undertakes that annual accounts of the subsidiary companies and the related detailed information shall be made available to shareholders of the holding and subsidiary companies seeking such information at any point of time. The annual accounts of the subsidiary companies shall also be kept for inspection by any shareholder in the Head Office of the Company located at 43B, Okhla Industrial Estate, Phase III, New Delhi-110020, and of the Subsidiary Companies concerned.
The company shall furnish a hard copy of details of accounts of subsidiaries to any shareholder on demand.
For and on behalf of board of directors of
MOSER BAER INDIA LIMITED
Date: February 28, 2014 Chairman and Managing DirectorPlace: New Delhi Deepak Puri
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Regd. Office: 43-B, Okhla Industrial Estate, Phase-III, New Delhi-110020Tel: 011-40594444 Fax: 011-41635211, 26911860www.moserbaer.com, E-mail: [email protected] CIN No.: L51909DL1983PLC015418